Business A-Level
profit versus profitability
What profit versus profitability means in Business A-Level, as defined for AQA.
Definition of profit versus profitability
Check what you remember
Read the wording for your board, then hide it and explain profit versus profitability in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Profit is an absolute sum of money, while profitability sets that sum against something else, so the two can move in opposite directions.
Topics that use profit versus profitability
Related terms
- cash flow versus profit
- constraints on small firms
- credit control
- debt factoring
- margins and return on capital employed
- price elasticity of demand
- supplier bargaining power
- conflict between cash and profit
Using profit versus profitability in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Business A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge