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Unit 3 P1

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Submitted By Hamdagee
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UNIT 3-P2 Hamda Hassan

Introduction
In this I will be talking about revenue. There are three types of revenue: leasing, sales and interest.

Revenue means the total income coming to the business. Incomes generate from sales of products or services. Also businesses find various ways to make revenue for example leasing and interest. Revenue is important for every business as it seen as a top item in an income statement.

There are three types of revenue:

Interest-this comes from when a business puts a certain amount of money into a bank account and gets even more money from the bank at the end. Nike has a structured cycle for interest; Nike sell products and as an outcome gains profit, the profit made is then put into the businesses bank account, interest is earned and it is invested, new products are made and sold for an even higher price and the cycle begins again.
Sales-sales are the top source to earn revenue for their business. This comes from when a customer pays a business for its products and/or services. Sales are very valuable for each business because it’s their main source of earning money. Nike sells clothes and trainers.

Leasing-this comes from the money a business gets from a person or a business using part of another businesses property. Companies such as Nike use leasing to earn revenue; Nike would lease out flats on top of their stores. So that even if the shop is not selling they are still making money from letting other people rent out their flats

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