Businesses exist for all sorts of reasons, but whatever the unique mix of objectives businesses set for themselves, one motive remains consistent: the desire to make profit. As the expression goes: ‘Money makes the world go round.’ Even not-for-profit and social enterprises are concerned with turning a ‘surplus’ or delivering a ‘triple bottom line’ of people, plant and profit.
It is important that you understand the concepts of profit and profitability, but getting to grips with the relationship between cost, price, revenue and profits is also essential. Being able to interpret the numbers and say what they mean is the key ingredient to truly understanding an examination case study and being able to scoop those all-important analysis and evaluation marks.
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