Profit is how much money your investment made for you, or how effective your investment was at making you money, whereas, Profitability is how efficiently your investment made you that same money.
Profitability is measured by dividing net profit by total assets (see
below).
OR
(ROI = Return On Investment)
Profit- money (represented by an absolute number) that is earned on an investment. Profit is broken down into two basic types: accounting profit and entrepreneurial profit.
Accounting profit- the amount of a business' revenues that is left over after paying all expenses.
Entrepreneurial profit-
the amount of money you earn in a business, that is above and beyond what
you would have earned, had you chosen to invest time and money in some
other venture.
Example:
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