Entrepreneurship Report.pptx
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This document discusses revenue forecasting for a business. It defines revenue as the amount of money generated from sales exceeding the costs of producing goods or services. Revenue is recognized when earned, whether in cash or charged to a customer. Income differs from revenue in that it is revenue minus all business expenses. Other terms related to revenue include service income, which is money earned from technical or consulting services, and sales, which refers to revenue from product or service sales. Examples of each are provided.
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Why is “Profit” a problematic target? Please consider in your answer different types of profit, the
possible differences between profit and turnover (=sales) as a measure and also the definitions
and meaning of profit/capital ratio(s).
Solution
\"Profit\" is a problematic target because it includes wide range of emotions and and issues
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3. Net Profit after Interest and Tax - Net profit of a company further reduced when interest and
taxes are deducted from profit.
4. Retained Profit - Retained profit is any profit remaining after the shareholders receive their
dividends.most of the time this funds will reinvested in company.
Differences between profit and turnover -
Turnover is net sales generated by firm while profit is earning of a firm after all expenses have
been charged against net sales.Thus Turnover and Profit is beginning and ending points of the
income statements.
A difference between turnover and profit is that a rising in turnover may be a sign that business
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Why is “Profit” a problematic target? Please consider in your answer different types of profit, the
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and meaning of profit/capital ratio(s).
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\"Profit\" is a problematic target because it includes wide range of emotions and and issues
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making on pricing. Profit is the difference between income a business generates and expenses
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decision about pricing and what material to be used in manufacturing part of business.
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taxes are deducted from profit.
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dividends.most of the time this funds will reinvested in company.
Differences between profit and turnover -
Turnover is net sales generated by firm while profit is earning of a firm after all expenses have
been charged against net sales.Thus Turnover and Profit is beginning and ending points of the
income statements.
A difference between turnover and profit is that a rising in turnover may be a sign that business
is growing but profit is and indicator of health of business.
The definitions and meaning of profit/capital ratio - Profit capital ratio expressed as percentage,
complements ratio by add a company\'s debt liabilities, or funded debt, to equity to reflect
company\'s total capital. This ratio measures narrow focus to gain a better understanding of
company\'s ability to generate returns from available sources..
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- 1. FORECASTING THE REVENUES OF THE BUSINESS
- 2. Objective: -In this lesson, we will understand what is revenue and identify the mark-up and selling rice of the product.
- 3. What is Revenue? - Revenue is a result when sales exceed the cost to produce goods or render the services. It is recognize when earned, whether paid in cash or charged to the account of the customer.
- 4. What Difference Between Revenue and Income? -When comparing revenue vs income you should know that “revenue” refers to the total amount of money a company generates before removing any expenses. “Income”, on the other hand, is equal to revenues minus the costs of doing business, such as depreciation, interest, taxes, and other expenses.
- 5. Other Terms Related to Revenue includes Service Income and Sales
- 6. What is Service Income? -Any income earned by providing technical, consulting or other professional services as a part of their trade, profession or business is considered as service income.
- 7. What is Sales? - sales refers to a company's revenue earned from the sales of products or services (net sales).
- 8. Examples of Service Income • subscription service • monthly rent • licensing fees or a monthly retainer Examples of Sales • Buying something like products either from an online store or the store near to your house is an example of a sale.