Business · GCSE
Cash Is Not Profit
A business can be profitable on paper and still run out of money to pay its staff — how? Where finance comes from, internal and external, and the DfE’s own test of suitability; revenue, costs and the two kinds of profit; a break-even chart with the crossing point computed, not guessed; all five DfE formulae, gross and net margin to average rate of return; a worked break-even calculation. Thirteen terms to define, a model answer on why profit isn’t cash, and the misconceptions that cost marks.
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