Market II - JSS2 Business studies Past Questions and Answers - page 2

Auctions are public sales events where goods or services are sold to the highest bidder. Participants compete by placing bids, with the highest bid winning the item. Auctions can be conducted in-person or online, and they often result in competitive pricing and quick sales.

The cost of sale includes all expenses incurred in the process of selling a product or service, such as production costs, marketing expenses, distribution fees, and transaction fees. It is important for businesses to calculate it accurately to determine profitability and set appropriate pricing strategies.

Turnover, also known as sales turnover or revenue, measures the total value of goods or services sold within a specific period. It reflects the efficiency of a business in generating sales and is a key indicator of its financial performance.

Businesses calculate profit by subtracting total expenses from total revenue generated through sales. Analyzing profit and loss is essential for businesses to assess their profitability and make informed decisions to improve financial performance. Profit represents the surplus earned by a business after covering all costs, while loss occurs when expenses exceed revenue, resulting in a negative financial outcome.