What Businesses Do.

• Businesses - pay for raw materials > transform into finish products > sell them.
• Customers pay MORE for finished product than business originally paid.
• Difference between cost of raw materials bought and the price customer pays = VALUE ADDED.
• Value Added leaves a SURPLUS - used to pay other costs such as wages, rent, electricity. Left over money = PROFIT.
• The greater the value added, the higher the profits are.

Pay Transform Sell