Which term describes the financial gain made in a transaction?

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The term that describes the financial gain made in a transaction is profit. Profit refers to the surplus remaining after total costs have been subtracted from total revenue. It represents the actual earnings that a business or individual retains after all expenses are accounted for. Understanding profit is essential for evaluating the financial health of a business, as it indicates how effectively resources are being utilized to generate income.

Revenue, on the other hand, refers to the total amount of money received from sales before any expenses are deducted, which is a precursor to calculating profit but does not indicate net gain. Dividend pertains to the portion of profit distributed to shareholders, which is a form of profit sharing but does not define the gain from a transaction itself. Yield typically represents the income return on an investment, usually expressed as a percentage of the investment cost, and while related to profits, it does not specifically define the gain from a transaction.

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