Question 1: What is the term used to describe the money a business earns from selling its products or services?

Answer: Revenue

Question 2: Define the term 'expenses' in a business context.

Answer: Expenses are the costs a business incurs to operate, such as rent, wages, and supplies.

Question 3: What is the difference between profit and loss?

Answer: Profit is the money a business makes after deducting expenses from revenue. Loss occurs when expenses exceed revenue.

Question 4: Explain what is meant by 'cash flow' in a business.

Answer: Cash flow is the movement of money into and out of a business, showing how cash is generated and used over time.

Question 5: Identify two ways a business can increase its profit.

Answer: By increasing sales revenue and reducing expenses.

Question 6: Describe what is meant by 'profit margin'.

Answer: Profit margin is the percentage of revenue that remains as profit after all expenses are deducted.

Question 7: Sketch a simple bar chart that shows monthly revenue for a business over four months. Label the axes.

Answer: A bar chart with months on the horizontal axis and revenue amounts on the vertical axis. Four bars of varying heights representing each month's revenue.

Question 8: Draw a diagram to illustrate the difference between gross profit and net profit. Use labels to show what is deducted or added.

Answer: A simple flowchart showing: Revenue minus Cost of Goods Sold equals Gross Profit. Then subtract Operating Expenses to get Net Profit.

Question 9: What is meant by 'debt' in a business? Give one example of a type of debt a business might have.

Answer: Debt is money owed by a business to others. An example is a bank loan.

Question 10: Explain why keeping accurate financial records is important for a business.

Answer: Accurate records help the business track its financial performance, make informed decisions, and prepare for taxes.

Question 11: Sketch a simple pie chart to represent a business's expenses, dividing it into categories such as wages, rent, and supplies. Label each section.

Answer: A circle divided into segments proportionate to each expense category, with labels for wages, rent, supplies, and other costs.