Economy

What is revenue? »Its definition and meaning

Anonim

Revenue is a word derived from the Latin "reditus" which means "to return." Within the financial context, it refers to the profit or benefit generated by a capital. It is seen as a synonym of interest, which means that it is the utility that, in a renewable way, offers every investment and that is generally measured in percentage. The most important return is obtained when the profit is great in a short period of time and with little investment.

For example: when bank interest rates are very low, the person will obtain a greater return if they invest in houses and then rent them.

The money deposited in a bank can provide benefits in the form of interest. Therefore, when an already established capital produces a benefit, it is said to generate revenue.

This word is also associated with allegorical or immaterial things. Revenue, being synonymous with profit, can be applied in common language in the following way: a boxer can profit from the exhaustion of his rival, this what he means is that he will try to take advantage of the fatigue of his opponent to achieve victory. This is at the sports level.

Now, if it is taken to the political context, the revenue has a negative meaning, since in theory, politicians should work in favor of the communities, when any of them shows a search for personal interest, they are accused of walking to the hunt for an electoral or political profit, that is, politicians work because they need the votes of the people and not to make any contribution or help to the population.

At present there are many political actors who have benefited from many circumstances, on a daily basis it can be observed how politicians accuse each other of carrying out certain actions with the sole purpose of obtaining votes in the next elections. For example, when cases such as Venezuela are observed where social benefits such as housing and pensions are granted for the elderly, not with the aim of benefiting the population, but with the purpose of gaining political revenue with these actions.