ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Rate of Gross Profit means the Rate of Gross Profit earned on the Turnover during the financial year immediately before the date of the loss, destruction or damage by a peril insured against.

Detailed explanation-2: -Subtract your business’s expenses and operating costs from your total revenue. This calculates your business’s earnings before tax. Deduct taxes from this amount to find you business’s net income. Your net income will be your business income.

Detailed explanation-3: -Net Profit Margin:-The net profit margin is equal to net profit divided by total revenue. It is expressed as a percentage. The difference between the operating profit and the net profit is that the former is based solely on its operating expenses by excluding the cost of interest payments and taxes.

Detailed explanation-4: -Loss of gross profit This covers the loss of net profit following a reduction in turnover, standing charges and also any increased cost of working (see definition in boxout). Gross profit’s key distinguishing feature is that customers can specify certain costs to deduct in order to arrive at their final sum insured.