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Profit is the money made when a business'income is more than its expenditure. Loss is the m oney lost when a business'expenditure is more than its income. For each of the businesses below, state whether they made a profit or a loss.

Question

Profit is the money made when a
business'income is more than its
expenditure.
Loss is the m oney lost when a
business'expenditure is more than its
income.
For each of the businesses below,
state whether they made a profit or a
loss.

Profit is the money made when a business'income is more than its expenditure. Loss is the m oney lost when a business'expenditure is more than its income. For each of the businesses below, state whether they made a profit or a loss.

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IraElite · Tutor for 8 years

Answer

- Business A: Loss<br />- Business B: Loss<br />- Business C: Profit

Explain

## Step1: <br />To find whether a business makes a profit or a loss, we compare the income of the business to its expenditure. If income exceeds expenditure, then the business made a profit. Conversely, if expenditure exceeded income, then the business has a net loss.<br /><br />## Step2: <br />Let's consider the details of each business to step through this process.<br /><br />### For Business A<br />Income = \(£100\) <br> <br />Expenditure = \(£200\) <br> <br />Here, the expenditure exceeds the income. So, this business has a loss. <br /><br />### For Business B<br />Income = \(£49.85\) <br><br />Expenditure = \(£71.24\) <br> <br />Here, the expenditure exceeds the income. So, this business has a loss. <br /><br />### For Business C<br />Income = \(£21,357\) <br> <br />Expenditure = \(£7,028\) <br> <br />Here, the income exceeds the expenditure. So, this business has made a profit.
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