You speak to a business owner that is taking in almost $2,000 in revenue each month. The owner still says that they’re having trouble keeping the doors open. How can that be possible? Use the terms revenue, expenses, and profit/loss in your answer.(write like an 8th grader, 2 sentences)

Answer 1

Even though the business owner is making $2,000 in revenue each month, they might have high expenses that take up most of that money. If their expenses are more than their revenue, they will end up with a loss instead of a profit, which can make it hard to keep the business running.