Terminology (Investopedia)

Question 1

Royalty (Income)

Answer 1

A payment to an owner for the ongoing use of their asset or property

Examples: Patents, copyrighted works, franchises, natural resources

Question 2

Operating profit

Answer 2

Operating profit is an accounting figure that measures the profit earned from a company’s ongoing core business operations, thus excluding deductions of interest and taxes.

This value also does not include any profit earned from the firm’s investments, such as earnings from firms in which the company has partial interest.