BMGT 110 Chapter 1: Revenue and Profit

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 110
• Professor: Hugh Turner

Document Summary

Revenue: the amount of money that the business has received from their good or service. - top line --everything is subtracted to get to the bottom line. -money that"s left over after all expenses are paid bottom line. Top 500 companies of 2012 have sizable revenues - even whent then the expenses are subtracted. Walmart"s profit of margin is lower because the price of their products are lower so they do not have higher expenses. They make up for selling cheaper products by selling more (very successful) --profit margin is the amount of profits a company makes out of their total revenue. Non-profit organizations can be very successful without profit being their main goal. Entrepreneurs take risks all the time to increase the profitability of their businesses. The higher the risk usually higher of a reward.