Microsociety - Week 6 - Profit & Loss

We learnt what was the meaning of profit and loss was. Profit is when you have made more money than what you have spent. For example, if you spent 50 pounds on making a business and you make 75 pounds, your profit would be 25 pounds. Loss is when the amount of money spent on making a business is more than the amount you are making. For example, if you spent 60 pounds on making a business but you only manage to make 20 pounds, your loss would be 40 pounds. Companies try to make a profit instead of a loss. If a business is not doing very well, they might have to shut down.

There was recently a general election. A general election is when public vote for their new prime minister. We watched a video explaining what happens during an election. People go to a polling station. They fill out their card and put a cross in one of the boxes. All though the night, some people count the votes. And that is what happens during an election.

We did some trading. Several of the businesses went really well and they got a lot of money. Everyone started paying tax and the officials got paid. The businesses that made lots of money often sold a lot of different items and made some good deals.