Revenue vs. Profit: What’s the Difference?

Understanding the difference between revenue and profit is essential in understanding basic and complicated economics. Even if you don’t know exactly what these terms mean, you’ve heard the words in passing.

Profit is money in your pocket, and revenue is sales, right? While that is true sometimes, more details will help you clarify the difference and see how it is vital to your future business endeavors.

What is revenue?

Revenue is the total amount of money generated through business sales or other activities within the business.

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