Agung Julian Pradana

200210401086

Question

1. What is meant by business?

2. What does the business provide?

3. What is meant by profit?

4. What is meant by revenue?

5. What is meant by a non-profit business?

Answer

1. Business is the activity of producing, selling, or exchanging goods or services. These can range from
small scale operations, such as sole proprietorships or partnerships. The goal of businesses is to
generate revenue and earn a profit by providing goods or services that satisfy customer needs or
wants.
2. Businesses provide things that people want to buy, like products or services, in exchange for
money.
3. Profit is the amount of money a business earns after deducting all of its expenses from its income.
In simple terms, profit is the money a business generates from selling its products or services,
minus the costs of producing and shipping them. A positive profit means the business is making
more money than it spends, while a negative profit means the business is losing money.
4. Revenue refers to the total amount of money a business earns from selling its products or services
before deducting any expenses. It's the income that a business generates from its primary
operations, such as selling goods or providing services, and is often the starting point for calculating
profit or loss. In simpler terms, revenue is the money a business makes from selling its products or
services to its customers.
5. A non-profit business is an entity that operates to fulfill a specific social mission or purpose, rather
than to generate a profit. Non-profit organizations are typically dedicated to charitable,
educational, religious, scientific, or other public service purposes. Instead of distributing profits to
owners or shareholders, any surplus revenue is reinvested back into the organization to support its
mission. Non-profit organizations can still generate revenue through donations, grants, or fees for
services, but their primary goal is not to make a profit.