Lucrative

Reviewed by Apoorva | Updated on Sep 28, 2020

Introduction

Being lucrative means an item or an idea that is able to produce a lot of income. It can describe an individual's or an organisation's efforts to produce a profit on a short or long term basis.

Understanding Lucrative

Lucrativeness consists of net earnings and not gross revenue. The path to achieving lucrativeness can be complex.

Consider a company that has raised capital through funding. The company tries to pursue strategies that can increase earnings and make a profit beyond the investments received. If the company sells its products to a sum less than the overall investment, it will go in losses and cannot be called lucrative.

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