Profit is a concept that refers to when there is an economic benefit, a profit or, in the words of Karl Marx, a capital gain. All this, preceded by the control of the production or distribution of a service or a good.
Profit refers to the situation that occurs when a person, after carrying out a certain economic activity, generates an added benefit. This benefit is known as profit.
Thus, profit is one of the main rules of capitalism, since it establishes a system through which, through profit, the interest and private incentive of people is generated. This is because the markets, as well as the States, must guarantee the use of the right to private property and the right of exploitation. All this, corresponding to the corresponding tax for having generated said profit.
It is said that an economic activity is for profit when the exploitation of a good or a service is carried out to obtain an economic return. That is, when a person carries out a task to obtain a financial benefit for it. This is what we know as the profit motive.
It is important to highlight this, since many foundations and organizations, such as NGOs, carry out an economic activity, but they are not for profit. This means that they do not generate profit for it, since they do it without pursuing their own economic purpose.
Loss of profit
Loss of profits is the patrimonial damage caused by the absence of profit, due to an illegal act, the damage of a third party or the breach of a contract.
When a person must comply with a contract and its breach entails a loss of benefits for the counterpart, it is said that there is a situation of lost profit.
This situation is punishable by law. In this way, the cause of the damage is obliged to correspond with compensation to the affected person. In this way, corresponding to him for the damages and losses until the damage committed is repaired.