reflection questions\nyou speak to a business owner that is taking in almost $2,000 in revenue each month…
reflection questions\nyou speak to a business owner that is taking in almost $2,000 in revenue each month. the owner still says that theyre having trouble keeping the doors open. how can that be possible? use the terms revenue, expenses, and profit/loss in your answer.\ntype your entry and click submit...
Answer
Brief Explanations:
Revenue is the total income from business operations. Expenses are the costs incurred (e.g., rent, salaries, supplies). Profit is calculated as (Profit = Revenue - Expenses). If the business owner has high expenses (say (Expenses>$2000)), then (Profit=$2000 - Expenses<0) (a loss). A consistent loss means the business is spending more than it earns, making it hard to stay open.
Answer:
The business owner may have high expenses. Revenue ((R = $2000)) minus expenses ((E)) gives profit ((P=R - E)). If (E>$2000), then (P<0) (a loss). A loss means the business is spending more than it earns, so it struggles to stay open despite the revenue.