Business Units, Profit and Loss Statement Quiz- Mr. Saladrigas

Profit & Loss Statement

a financial report that summarizes the revenues, costs, and expenses of a company

Basic Structure of a Profit and Loss Statement

Revenue

\-COGS

\-Operating Expenses

___________________

=Gross Income

\-Taxes

___________________

=Net Income

Revenue

money generated from normal business operations

COGS (Cost of Goods Sold)

the direct costs of producing the goods and/or services sold by a company

Operating Expenses

all the expenses a business incurs through its normal business operations, excluding COGS

Gross Income

Revenue minus Expenses

Taxes

mandatory contributions collected from a business by a government entity

Net Income

Gross Income minus Taxes

Balance Sheet

a financial report that tells you what a company is
worth in terms of its assets and liabilities

Basic Structure of a Balance Sheet:

Assets

\-Liabilities

____________

=Net Assets

Assets

anything of value (that can be converted into cash)

Liabilities

something a person or company owes

Operations Management

responsible for the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

Human Resources

responsible for all things worker-related. That includes recruiting, vetting, hiring, onboarding, training, promoting, paying, and firing employees and independent contractors.

Processes/Production

responsible for modeling, analyzing, and optimizing business processes and production to help meet strategic business goals.

Finance

the unit of a business responsible for obtaining and handling any monies on behalf of the organization and reporting on those monies.

Marketing and Sales

marketing is responsible for building awareness of an organization, brand, and its products and services to potential customers. Sales is responsible for converting potential customers into actual ones and therefore generating revenues.

Logistics

responsible for the governance of supply chain management functions that help organizations plan, manage and implement processes to produce, move, and store goods and materials.