Business Studies Practice
Level: High school/ Year 11
This pack includes:
Concise study notes
Formula sheet
Practice quiz
Full worked solutions
1. Key Study Notes
Revenue, Costs, and Profit
Revenue: Money earned from sales
Costs: Expenses involved in running the business
o Fixed costs (rent, insurance)
o Variable costs (materials, labor per unit)
Profit: Money left after costs are paid
Profit vs Revenue
High revenue does not always mean high profit
Businesses aim to maximize profit, not just sales
Break-Even Point
The level of output where total revenue = total costs
At break-even, profit = 0
Cash Flow
Movement of cash in and out of a business
A profitable business can still fail due to poor cash flow
Gross vs Net Profit
Gross profit: Revenue − Cost of Goods Sold (COGS)
Net profit: Gross profit − all other expenses
Level: High school/ Year 11
This pack includes:
Concise study notes
Formula sheet
Practice quiz
Full worked solutions
1. Key Study Notes
Revenue, Costs, and Profit
Revenue: Money earned from sales
Costs: Expenses involved in running the business
o Fixed costs (rent, insurance)
o Variable costs (materials, labor per unit)
Profit: Money left after costs are paid
Profit vs Revenue
High revenue does not always mean high profit
Businesses aim to maximize profit, not just sales
Break-Even Point
The level of output where total revenue = total costs
At break-even, profit = 0
Cash Flow
Movement of cash in and out of a business
A profitable business can still fail due to poor cash flow
Gross vs Net Profit
Gross profit: Revenue − Cost of Goods Sold (COGS)
Net profit: Gross profit − all other expenses
