Managing a business includes planning, organizing, and focusing on achieving a goal, such as expanding the business. Measuring Financial Performance Measuring the financial performance of a business is important as it will tell you where you are Business is in terms of money and it is mainly the level of performance during a particular period of time that decides whether you have made losses or profits, e.g. example can tell you the value added to your business or the return on assets and return on investment. It will also help entrepreneurs make decisions and develop strategies to ensure that their business suffers fewer losses and earns more profits.P2 - Explain the difference between capital and revenue items of expenditure and income.Capital