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HOW BUSINESSES GENERATE INCOME (MAKE MONEY)
Part 3
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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.
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Lesson Objective
To identify how businesses make money.
To identify sources of revenue for a business.
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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.
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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!!
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Activity 2
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Other sources of revenue
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Activity 3
In groups, using the following descriptions, make a list of all their revenues!• Mechanics• Caterer• Pawnbroker• Butcher• Jeweller• Beautician• Shoe shop• Lawyer
Products Services
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Mechanics Beautician Shoe Shop
Products Services Products Services Products Services
Car parts MOTs Combs Hair cuts shoes reheeling
Sell Wheeles Repairs brushes Hair Styling laces fitting
inflate tyres Shampoo Dye hair polish
scissors Wash hair bags
Caterer straighteners Up do's cleaner
Products Services nail varnish Nails
Makes food Parties nail files Waxing Lawyer
Pizzas Weddings make up Ear piercing Products Services
wills defends people
Pawnbroker Jeweller House buying and selling
Products Services Products Services divorces
Stuff Lends money watches fix jewellery help people
buy things from you earrings engraving contracts
bracelets cleaning guidance
Butcher necklesses
Products Services lighters
Meat Cut and trim meat rings
BBQ packs Delivery
Christmas packs
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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!