# ENTREPRENEURSHIP

## INTRODUCTION TO ENTREPRENEURSHIP

### IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If you own your own business you will need to know how to calculate your profit. Which one is a calculation of profit?
 A Sales-months in a year B Sales-expenses C Total sales-expenses D Monthly sales* expenses
Explanation:

Detailed explanation-1: -Profit is simply total revenue minus total expenses. It tells you how much your business earned after costs. Since the primary goal of any business is to earn money, profit is a clear indication of how your company is functioning and performing in the market.

Detailed explanation-2: -Finding profit is simple using this formula: Total Revenue-Total Expenses = Profit.

Detailed explanation-3: -Profit is revenue minus expenses. For gross profit, you subtract some expenses.

Detailed explanation-4: -To find your net income or earnings, you need to know your total business revenue and expenses (including the cost of goods sold). Add up your company’s costs, like office supplies, operating expenses, payroll costs and business loan payments. Then, use this formula: Net Income = Revenue – Expenses.

Detailed explanation-5: -When calculating profit for one item, the profit formula is simple enough: profit = price-cost . total profit = unit price × quantity-unit cost × quantity . Depending on the quantity of units sold, our profit calculator can also determine the total cost, profit per unit, and total profit.

There is 1 question to complete.