Profits and Profitability (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does profitability measure?
What does profitability measure?
How efficiently sales convert to profit
Which scenario shows better profitability?
Which scenario shows better profitability?
£80k profit from £500k sales
A cafe raises prices from £3 to £3.50 but sales drop from 200 to 150 cups daily. What happens?
A cafe raises prices from £3 to £3.50 but sales drop from 200 to 150 cups daily. What happens?
Revenue falls from £600 to £525
What determines if price increases will boost or harm profits?
What determines if price increases will boost or harm profits?
Price elasticity of demand
What is the main risk when cutting costs?
What is the main risk when cutting costs?
Quality may suffer and harm reputation
Why does maximizing capacity utilization improve profits?
Why does maximizing capacity utilization improve profits?
Full capacity costs only slightly more
What is factoring?
What is factoring?
Selling unpaid invoices for immediate cash
What is a long-term consequence of sale and lease back?
What is a long-term consequence of sale and lease back?
Ongoing rental costs reduce profitability
Which improves efficiency?
Which improves efficiency?
Minimizing resources needed per product
What problem can arise from using capacity fully?
What problem can arise from using capacity fully?
Difficulty matching supply with demand