sources of revenue and costs

• What is the main focus of the lesson?

  Sources of revenue and costs
• What is revenue?

  Money earned from selling products or services
• What are the two types of revenue?

  Operating revenue and non-operating revenue
• What is operating revenue?

  Money made from primary business activities
• How does an e-learning platform generate operating revenue?

  Through subscriptions and digital resource sales
• What is non-operating revenue?

  Money from activities not related to primary business
• Give an example of non-operating revenue.

  Selling old office furniture
• Why is non-operating revenue considered less reliable?

  It is not directly related to core activities
• What is a common goal for business owners regarding revenue?

  To increase revenue
• What is one strategy to increase revenue?

  Lowering prices to attract more sales
• How can better marketing affect revenue?

  It can attract more customers and purchases
• What does diversifying a product range do for revenue?

  Attracts different customer groups
• What are costs in a business context?

  Money spent on business operations
• What are the two categories of costs?

  Startup costs and running costs
• What are startup costs?

  Expenses before the business opens
• Name an example of startup costs.

  Research and hiring staff
• How are startup costs typically funded?

  Through loans, grants, or family support
• What are running costs?

  Day-to-day expenses of a business
• How can profits be increased without raising revenue?

  By keeping costs down
• What is one way to minimize costs?

  Outsourcing tasks to external agencies
• How can automation help a business?

  It increases efficiency and reduces labor costs
• What is a benefit of downsizing office space?

  It can save on rent expenses
• How can energy-efficient technology help reduce costs?

  By minimizing utility expenses
• What should businesses consider when shopping for suppliers?

  Cost without compromising quality
• What are the strategies for maximizing revenue?

  • Increasing prices carefully
  • Lowering prices to attract sales
  • Investing in better marketing
  • Diversifying product range
• What are the strategies for minimizing costs?

  • Outsourcing tasks
  • Automating activities
  • Reducing office space
  • Minimizing utility expenses
  • Using cheaper suppliers
• What is the relationship between revenue and costs in a business?

  • Revenue is income from sales
  • Costs are expenses incurred
  • Profit is revenue minus costs