What is revenue?
Q: What is revenue?
A: Revenue is the income an organization receives from its normal business activities, usually from the sale of goods and services to customers or through various taxes for a government.
Q: How do corporations generally generate revenue?
A: Corporations generally generate revenue through the sale of goods and services to customers.
Q: What are some other sources of revenue for businesses?
A: Some other sources of revenue for businesses include interest, dividends, and royalties paid to them by other companies.
Q: Is revenue the same thing as profit?
A: No, revenue is not the same thing as profit. Profit represents what is left over after all expenses are subtracted from revenues.
Q: Can a company generate high levels of revenue without earning any profit at all?
A: Yes, it's possible for a company to generate high levels of revenue without earning any profit if their expenses outweigh their revenues.
Q: What is net profit?
A: Net profit is the profit left over after all expenses have been subtracted from revenues.
Q: What happens if a company incurs more costs than revenues?
A: If a company incurs more costs than revenues, they will have zero net profit or negative net profits.
