IMPACT OF PROFIT AND LOSS

●The impact of profits and losses on a business and its owners

Specification detail

FORECASTING PROFIT

It is important to forecast how much profit (or loss) your company will make so that you can make informed decisions about the future for another.

What informed decision may a sports shop make by forecasting how much profit it will make.

Use the graph below to discuss the affect the difference between the forecast and actual will have on the business.

DISCUSS

ACTUAL PROFIT

What advice would you give a new business that is very profitable, for the first 6 months that they were open?Why.....

USING PROFIT

Profit usually makes us think of someone getting rich. In fact, most profit is reinvested back into the company.

Can you think of what these investments include?

INVESTMENTS

What investments would your make to your business if you owned a music shop that specialised in pianos and keyboards.

P DIDDY'S PRAM

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THE WALLHere