Please enable JavaScript.
Coggle requires JavaScript to display documents.
2.3.1 Profit - Coggle Diagram
2.3.1 Profit
-
-
Profit vs Cash
-
A business doesnt get the profit straight away - customers may not pay for their goods or the business may not have to pay its costs straight away.
A business that's making a lot of profit might still run out of cash and a business that has a lot of cash might still not turn a profit.
-
-
Net profit
-
Money from investments would also be taken into account, made or lost.
-
Net profit margin %
-
Used to attract shareholder as it indicated that the business will be able to pay high dividends or not.
-