1. Ms Haron - GCSE Business - P2 Friday 11th December 2015
TEACHERS DESK
Board
Door
Balween
Asil
Mulki
Lidia
Ria
Get out your Finance worksheet ready to hand in inside your HW folder.
Get out your Finance worksheet ready to hand in inside your HW folder.
Jack
Trish
Anthony
Yassir
Shuyeb
Bonnie
2 mins to sit down
Nasir
Nice
Mason
Imran
Rabbab
Charlotte
Maruf
Sam
Jahangir
Shamar
Edmond
Brijesh
Simran
Rahat
Yugesh
Harry
Aditya
Joe
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

2. Ms Haron - GCSE Business - P2 Friday 11th December 2015
Homework
Get out your Finance worksheet ready to hand in inside your HW folder.
0 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

3. Ms Haron - GCSE Business - P2 Friday 11th December 2015
Learning Objectives - You have 3 minutes to write these down whilst I collect in homework 1
To define profit and how it is measured 2
To calculate profit in a business scenario 3
To understand what a business owner can do with profit
5 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

4. STARTER: What did we do last lesson?
Ms Haron - GCSE Business - P2 Friday 11th December 2015
STARTER: What did we do last lesson?
5 mins
We will read the text above together
TASK: 1 - Pick out the costs
2 – Pick out the £ numbers that are the Fixed and Variable costs in the text
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

5. Ms Haron - GCSE Business - P2 Friday 11th December 2015
STARTER:
Answer the questions on your worksheet You have 10 minutes
10 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
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6. Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO1: What is profit?
Profit is the monetary return for taking a risk. Who can remember what the profit/loss formula is? Profit/loss= Total _______ - Total _____
3 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

7. LO2: Lets try to work it out Profit or loss?
Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO2: Lets try to work it out Profit or loss?
Profit/loss= Total Revenue - Total costs
Revenue
Costs
Profit or Loss?
If:
Total revenue greater than total costs
Total costs greater than total revenue
Total revenue = total costs
= Profit
= Loss
= Break-even A
£100,000
£75,000
£25,000 (profit) B
£125,000
£25,000 (loss)
5 mins
Write the working in your exercise book
Profit/loss =
_____ - _____
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

8. LO2: What about in the Starter example?
Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO2: What about in the Starter example?
How much profit do they make over a year giving 2,000 pet grooming sessions? (3)
Profit = Total Revenue - Total costs
Profit/loss = ______- _______
= ______
2 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

9. LO1: Two Ways of Measuring Profit
Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO1: Two Ways of Measuring Profit
Profit in absolute terms
The £ value of profits earned
E.g. £50,000 profit made in the year
Profit in relative terms
The profit earned as a percentage of revenues achieved or investment made
E.g. £50,000 profit from £500,000 of revenue is a profit margin of 10%
5 mins
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

10. Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO3: The profit choice
Once a profit has been made, the owner of the business has a choice:
1. Take the profit out of the business
e.g. - Pay dividends to shareholders
- Draw money out as an owner
2. Re-invest the profit in the business
e.g. - new machinery & technology
- Open new locations
- Buy more stocks
3 mins
1042 – 1045 or
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

11. Ms Haron - GCSE Business - P2 Friday 11th December 2015
Think Pair Share
On your own Talk to your neighbour Tell the class
3 mins in pairs – 5 mins as a group
– Think and discuss then share ideas with the class for each point
If you made £10,000 profit in your pizza delivery business, would you draw money out of the business or re-invest it to make more profit? You have 3 minutes to discuss it in pairs
Think about:
How much more you could make if you re-invest?
What you would re-invest in?
What could you do with the money you drew out
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

12. Ms Haron - GCSE Business - P2 Friday 11th December 2015
LO3: Written answer
If you made £10,000 profit in your pizza delivery business, would you draw money out of the business or re-invest it to make more profit?
You have 5 minutes until the end of the lesson to answer this question in your exercise book.
I would draw the money because…
I would reinvest the money in ______ because…
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

13. Why should you reinvest profit into a business?
Ms Haron - GCSE Business - P2 Friday 11th December 2015
Why should you reinvest profit into a business?
An important and cheap source of finance
Decision is in the control of the entrepreneur
Profits are flexible – can reinvest some or all
Shareholders will usually be supportive
If time, this can supplement the Think Pair Share task
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit

14. Ms Haron - GCSE Business - P2 Friday 11th December 2015
Dealing with a loss
Many start-ups make losses
Costs incurred before trading begins
Takes time to build up revenues
Plenty of action that can be taken
Keep tight control of costs, particularly fixed costs
Try to minimise waste
Don’t take on too many people or expand too quickly unless the business can afford it
Wednesday, 14 November 2018Wednesday, 14 November 2018
Profit