Law Dictionary Definitions

profit-sharing plan.An employee benefit plan that allows an employee to share in the company’s profits. • ERISA governs the administration of many profit-sharing plans, which provide for discretionary employer contributions and provide a definite predetermination formula for allocating the contributions to the plan among the participants. Contributions are frequently allocated in proportion to each participant’s…

profit margin. 1. The difference between the cost of something and the price for which it is sold. 2. The ratio, expressed as a percentage, between this difference and the selling price. • For example, a widget costing a retailer $10 and selling for $15 has a profit margin of 33% ($5 difference divided by…

profit insurance.See INSURANCE. [Blacks Law 8th]

profiteering,n. The taking advantage of unusual or exceptional circumstances to make excessive profits, as in the selling of scarce goods at inflated prices during war. [Cases: War and National Emergency 59.] — profiteer,vb. [Blacks Law 8th]

profit à prendre (a prawn-dr<<schwa>> or ah prahn-d<<schwa>>r). [Law French “profit to take”] (usu. pl.) A right or privilege to go on another’s land and take away something of value from its soil or from the products of its soil (as by mining, logging, or hunting). — Also termed right of common. Pl. profits à…

profit-and-loss statement.See INCOME STATEMENT. [Blacks Law 8th]

profit-and-loss account.See ACCOUNT. [Blacks Law 8th]

profit,n.1. The excess of revenues over expenditures in a business transaction; GAIN(2). Cf. EARNINGS; INCOME. [Cases: Internal Revenue 3178; Taxation 996. C.J.S. Internal Revenue § 110; Taxation §§ 1732–1733.] accumulated profit.Profit that has accrued but not yet been distributed; earned surplus. — Also termed undivided profit. See retained earnings under EARNINGS. [Cases: Internal Revenue 3833.]…

profiling. See RACIAL PROFILING. [Blacks Law 8th]

proficua (pr<<schwa>>-fik-yoo-<<schwa>>). [Law Latin] Hist. Profits; esp., the profits of an estate in land. [Blacks Law 8th]