Carphone Warehouse to close high street stores

What is the basic definition of profit?

• The total expenses incurred by a business.

• The amount of money invested in a business.

• The difference between total revenue and total expenses.

• The total revenue generated by a business.

Which of the following is a component in calculating profit?

• Total investments

• Total liabilities

• Total revenue

• Total assets

Why is profit important for a business?

• It helps in determining the market share.

• It is used to calculate the total assets.

• It indicates the financial health and sustainability of a business.

• It is necessary for calculating taxes.

What can profit indicate about a business?

• The number of employees in the business.

• The amount of taxes paid by the business.

• The total number of products sold.

• The business's ability to expand and invest in new opportunities.

How does profit impact business decisions?

• It determines the color of the company logo.

• It sets the price of raw materials.

• It influences decisions on expansion and investment.

• It dictates the number of holidays for employees.