Boss Club Entrepreneurship 101 Ch 4 Review

Front

What is the cause of a profit?

Back

Profit occurs when total revenue exceeds total costs.

Front

What is another term for sales?

Back

Revenue

Front

What is the cause of a loss on an income statement?

Back

Total expenses exceed total revenues.

Front

If a company has $500 in sales and $300 in expenses, what is the net profit?

Back

$500 - $300 = $200

Front

How do you calculate cost per acquisition (CPA)? Options: CPA = Total Cost + Number of Acquisitions, CPA = Cost Per Lead/ Conversion Rate, CPA = Number of Acquisitions / Total Cost, CPA = Total Revenue / Total Cost

Back

CPA = Cost Per Lead/ Conversion Rate

Front

Which of the following shows how much money came into the business, what the money was spent on, and how much money is leftover in the business?
Options: Expense report, Sales report, Income statement, Overhead report

Back

Income statement

Front

Average order value is calculated to show

Back

How much a customer will spend every time they make a purchase

Front

A type of expense indirectly associated with your product or service that is necessary for the operation of your business is what type of cost?

Back

Overhead

Front

Which of the following is an example of a direct expense? Accounting fees, Labels and packaging for product, Website hosting fee, Phone bill

Back

Labels and packaging for product

Front

Average sales per customer is calculated to show

Back

Lifetime value of a customer