Profit (Edexcel 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 profit represent for a business?
What does profit represent for a business?
Money left after costs deducted from revenue
Which formula correctly calculates gross profit?
Which formula correctly calculates gross profit?
Revenue - Cost of sales
How is operating profit calculated?
How is operating profit calculated?
Gross profit - Operating expenses
What formula gives net profit (profit for the year)?
What formula gives net profit (profit for the year)?
Operating profit - Interest & exceptional costs
How do you calculate gross profit margin?
How do you calculate gross profit margin?
(Gross profit / Revenue) × 100%
Which profit margin is always the lowest of the three types?
Which profit margin is always the lowest of the three types?
Net profit margin
If revenue is £500k, operating profit is £75k, what is the operating profit margin?
If revenue is £500k, operating profit is £75k, what is the operating profit margin?
15%
What is a key risk of raising prices to improve profitability?
What is a key risk of raising prices to improve profitability?
Usually causes a fall in demand
Which method improves efficiency to reduce costs?
Which method improves efficiency to reduce costs?
Training staff to improve skills
Why does profit differ from cash in a business?
Why does profit differ from cash in a business?
Trade credit sales counted in profit not cash yet