Monday, 12 January 2015

Understand how businesses make a profit

Good morning year 11

This week we will focus on how businesses make a profit?

How does Sainsbury's make profit?
How does the school canteen make a profit?
How does BMW make a profit?
Does Oxfam make a profit?
Does Oxford Spires Academy make a profit?

  • You will need to understand how businesses generate revenue
  • Identify the different sources of revenue available to a business
  • Calculate revenue using examples in the exam without being given the formula
  • Revenue = number of sales x price per unit
  • You will need to describe how businesses have to send money (expenditure) in order to succeed.
  • Identify types of expenditure (including overheads) that a business may have 
  • Understand that expenditure is anything that a business pays out and that overheads are the everyday running costs of a business
  • Understand that a business must know how much money is coming in (revenue) and how much is going out (expenditure) before they can work out if a business has made a profit or made a loss
  • You will need to be able to define profit - revenue is greater than expenditure
  • You will need to be able to define loss - expenditure is more than revenue
  • You will need to be able to calculate profit using a formula which will not be given in the online assessment 
  • PROFIT = total revenue - total expenditure  
We will have three lessons to cover this topic.

An example of the online assessment that you will need to sit and PASS after Easter can be found here

Enjoy

Mr T

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