The term "bottom line" is commonly used in connection with actions that can increase or decrease a company's net or overall profit. Companies that increase profits and reduce costs are looking to improve profitability.
Profit is the money the company makes after deducting all costs. Whether it's a lemonade stand or a publicly traded multinational company, the main purpose of any business is to make money. Therefore, business performance is based on profitability in many ways.
Revenue, commonly referred to as net income or net income, is the amount of income remaining after considering all expenses, liabilities, additional sources of income, and operating expenses.
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