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A business that can produce profits without the owners involvement or with very minimal involvement from the owner behaves more like an 'investment' where the money the owner puts in is creating the majority of the return the owner gets without the requirement for hours of work. Summary A business delivers something of greater value than it costs that business to produce, thereby leaving a profit. Dividing profit by total income tells you the margin of the business.
A business that is efficient, consistent, well regarded and profitable over a longer period of time will pay returns to the shareholder s of the business many times the initial investment made.