ALB is a large bank. It has 300 branches and 5000 employees. ALB provides a range of financial services to its business customers. As it operates in a competitive market, ALB aims to maintain customer loyalty. Last year ALB's profit decreased to $$$\$ 3000 \mathrm{~m}$$$. The Managing Director is analysing ways to reduce ALB's costs. She also has to decide how new legal controls over employment issues might affect the business. The Government plans to improve protection of employees by changing laws on the minimum wage and health and safety. Define 'profit'. ........................................................................................................................................... ........................................................................................................................................... ........................................................................................................................................... ...........................................................................................................................................

Business

IGCSE&ALevel

CAIE

Exam No：0450_s20_qp_12 Year：2020 Question No：4(a)

Answer:

Award 2 marks for a full definition. Award 1 mark for a partial definition.
Profit is the amount of money that a business makes once costs have been
subtracted from the revenue [2]
Total revenue minus total costs [2].
Partial definition e.g. money left after costs paid [1]
Note: For both marks must have idea that there is both sales and cost
element to profit.

Knowledge points:

5.3.1.1. How a profit is made

5.3.1.2. Importance of profit to private sector businesses, e.g. reward for risk-taking/enterprise, source of finance

Answer:

Knowledge points:

Solution:

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