From the Profit-and-Loss Statement, what are the two ways that any business can increase their profits or lessen their losses? Explain in some detail.
What is a Marketing Plan? Discuss some procedures in making one up. Why is this important, especially for a Home-Based Agent?
What is the Balance Sheet? How can it help in showing the condition of the business?
What is the main item of many business' profit and loss statements that is not normally shown or needed in a travel agency operation?
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OTA 105878/Xenia Jones
Profit & Loss Statement
The profit and loss statement is also referred to as the income statement and is important to any business primarily because it is the business official 'Financial Statement' whereby revenue (or the top line - the general amount of money made from products and services before cost in its varied forms are deducted) is expressly denoted to express its transformation to net income or the 'bottom-line' (the profit made which is revenue minus cost). The Income statement is of great importance to stakeholders - managers, employees, investors, concerned government bodies, etc. in that it allows them to see the performance of the company within a particular period growth-wise. Transparency and accountability is what the Income statement means to many hence the income statement 'speaks for the performance and reliability' of any business. The income statement unlike the balance sheet (which shows only a certain date) covers a certain period of time thus presenting patterns within the organization and their customers' demand, purchase and business practice trends. This is what makes a Profit & Loss statement valuable to any business as they usually become evidentiary references to strategic planning when it comes to formulating new marketing and sales plans and strategies to expand the market or to present new products and services to a customer base. A P&L statement usually presents a particular period of sales within a business year typically following seasonal purchases. SO for example, if a travel agency is formulating Sales & ...
The solution provides an in-depth discussion, explanation, importance, practice and application of key subjects of study in Tourism management in terms of running asuccessful travel agency practice- Profit & Loss statement, marketing plan, balance sheet as well as important elementsin the Profit & Loss statement of a travel & tourism business. For expansion,aside from an in-depth description and discussion, websites are provided within the solution so that the student can use said links to find more detailed examples. The solution follows the APA format and references both in print and online are provided.