The profit earned through the normal operations and activities of the business is known as:

Operating profit

The correct answer is option 3- Operating profit.

Operating Profit (EBIT) is the profit earned through the normal operations and activities of the business. Operating profit is the excess of operating revenue over operating expenses. While calculating operating profit, the incomes and expenses of a purely financial nature are not taken into account. Thus, operating profit is profit before interest and tax (EBIT). Similarly, abnormal items such as loss by fire, etc. are also not taken into account. It is calculated as follows: Operating profit = Net Profit + Non Operating Expenses – Non Operating Incomes.