All Business Purchase Formulas Gcse In Suffolk
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FAQ
Profit is revenue minus expenses. For gross profit, you subtract some expenses. For net profit, you subtract all expenses.
Operating profit, also known as EBIT (Earnings Before Interest and Taxes), is a measure of a company's profitability that ignores non-operating expenses and taxes. It's calculated by taking a company's revenue, subtracting the costs associated with running the business, and ignoring interest and taxes.
Analyse questions (6 marks) require considering the benefits and/or drawbacks of the concept identified in the question. These questions always require application to the given case study. There should ideally be five linked strands of development from one or two points which must have application throughout.
Net profit is equal to total revenue minus total costs. Expenses like advertising, insurance, rent and business rates are taken away before calculating net profit.
Profit = total revenue – total costs. This is a simple and yet very important formula. If revenue is greater than costs, a company will make a profit. If costs are greater than revenue, a company will make a loss.
