Profit Center

Definitions

1. A part of the business evaluated primarily on the profit it generates rather than just on cost or support function. Treating a unit as a profit center changes incentives around pricing, accountability, and investment.

   In plain English: A business unit expected to generate profit directly.

   Example: "The services org shifted from cost center to profit center once pricing discipline improved."

Related Terms

• Burn Rate
• Compound Growth
• Cost Center
• Dead Cat Bounce
• Escrow
• Future Valuation
• G&A
• Gross Burn