What is profit? Why is it important in our society?

Profit is the amount of money that a business earns after deducting all associated costs and expenses. It is the main measure of success for a business and is generally represented as a percentage of the company’s total revenues. Profit is an important part of our economic system because it provides the money to finance investments, reward capital providers for taking the risk of starting new businesses, and to pay employees. Without profit, businesses can’t survive or grow. Profit also allows businesses to increase their market share or offer better products or services to their customers. Additionally, profit is important as it serves as a signal to the market that healthy competition exists and that there is an incentive to create better or more innovative products and services.