HOW BUSINESSES GENERATE INCOME (MAKE MONEY) Part 3.

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Presentation transcript:

HOW BUSINESSES GENERATE INCOME (MAKE MONEY) Part 3

Starter How do businesses make money? In your books, write down what you understand REVENUE to mean. You can research this and give a definition in simple language. I will select people at random to feedback to the class.

Lesson Objective To identify how businesses make money. To identify sources of revenue for a business.

Activity 1 Businesses need to earn money to survive. This is called revenue. The main source of revenue is from the goods or services the business offers.

Calculating revenue In order to work out the amounts of money a business makes from selling goods and services, we have to multiply the number of units sold by the selling price. Number of sales x Price per unit = revenue Now some examples together! NEED TO KNOW FOR THE EXAM!!

Activity 2

Other sources of revenue

Activity 3 In groups, using the following descriptions, make a list of all their revenues! Mechanics Caterer Pawnbroker Butcher Jeweller Beautician Shoe shop Lawyer ProductsServices

MechanicsBeauticianShoe Shop ProductsServicesProductsServicesProductsServices Car partsMOTsCombsHair cutsshoesreheeling Sell WheelesRepairsbrushesHair Stylinglacesfitting inflate tyresShampooDye hairpolish scissorsWash hairbags CatererstraightenersUp do'scleaner ProductsServicesnail varnishNails Makes foodPartiesnail filesWaxingLawyer PizzasWeddingsmake upEar piercingProductsServices willsdefends people PawnbrokerJeweller House buying and selling ProductsServicesProductsServices divorces StuffLends moneywatchesfix jewellery help people buy things from youearringsengraving contracts braceletscleaning guidance Butchernecklesses ProductsServiceslighters MeatCut and trim meatrings BBQ packsDelivery Christmas packs

Recap 1. What does the word revenue mean? 1 mark 2. How do you calculate the amount of revenue a business makes?1 mark 3. State two types of goods or service that might be offered at a hotel.2 marks 4. Apart from selling goods and services, what other sources of revenue might a business have?4 marks 5. Think of a large supermarket and two different sources of revenue for it. 2 marks Now you will mark each others!