Fundamentals of Capitalism Profit and Private Property
With many families living and thriving under the United States’ free enterprise system, it is easy to forget just how lucky we are to be able to benefit from all the positives of capitalism. Many other countries do not have the privileges of owning business property and earning their own profits from their businesses. ... The most important part of business, in the minds of almost every businessman or woman, is profit. Profit is what makes people eat, sleep, and breathe their business in order to squeeze every last dollar they can out of it. Profit, by definition, is, “An advantageous gain or return; benefit.” There are three kinds of profit in business, and they are, gross, net, and retained profit. ... First of all, gross profit is calculated by taking the cost of goods sold over a certain period of time, and subtracting that number from the amount of revenue generated from sales.