ABSTRACT
The concept of profit has different meanings in economics and accounting. In daily usage, the accounting concept is used. In economics, profit is the residual income left after payments are made for all factors of production. Economic theory assumes that firms earn revenues by selling the products they produce. As the firm sells more products, prices decline, so the contribution of additional sales to revenues will decrease. This additional revenue is called "marginal revenue" in economics. In accounting, profit is income of stockholders, the capitalist owners. Profit is defined as the difference between revenues and expenses. The present wave of globalization is preparing the ground for spread of supranational companies. For supranational companies, their contribution to national incomes and income generation has lost its meaning completely. Companies' profit maximization objectives may not even be consistent with creating employment and increasing production. The technological developments of our times provide companies with opportunities to increase their profit at expense of generating income.
