Utility is the interest or profit you get from something. The concept comes from the Latin utilĭtas, which means “useful quality”. Specifically, we can add that it is made up of the following parts: “uti”, which is synonymous with “it can be used”; “-Ilis”, which is indicative of “possibility” and the suffix “-dad”, which is equivalent to “quality”. This term is widely used in the field of economics and finance to describe the benefit obtained from a good or investment.
This means that if a person invests $1,000 in buying clothes that he then resells for a total of $1,500, he will make a profit of $500 on the transaction.
Net, on the other hand, is an adjective used to refer to a net, clean amount (in the sense of being well defined). In addition to the above, we can see that it is a word that has its etymological origin in French. Thus, we find that it emanates from the word “red”, which can be translated as “without spot, clean”. The net profit, then, is the profit obtained after applying the corresponding discounts. It is the concrete utility that the subject or company receives in the hand. For example, a company makes the monthly balance with a record that indicates income of 100,000 pesos. That money entered the coffers of the company, but that does not mean that everything is profit. The company also has expenses to bear, such as paying taxes, buying raw materials, etc. The net income will be the amount that results from subtracting these expenses from the income. If the entity had expenses of 60,000 pesos, the net profit for the period was 40,000 pesos (the 100,000 pesos of income minus the 60,000 pesos of expenses). This allows us to infer that a company can increase its net income without needing to increase its income, as it would if it were able to reduce its expenses. Net profit is sometimes confused with gross profit, but it should be clear that they are different. Thus, this could establish that it is the one obtained by subtracting from the income of a company from the sale of goods and services what would be the money that it would cost to produce them. Said gross profit also makes no use of general expenses or financial costs, such as payment of interest on debts or taxes. Both types of utility are important to establish which can be vital in determining the success of a given company. Likewise, they are also used to show the vulnerability of any entity. Specifically, when we speak of vulnerability we refer to the capacity that it may have to be able to face each and every one of the effects, adverse or not, that may occur at a given moment and among which situations would be found. .
