1 Business Basics

Front

How is a want defined?

Back

Something that adds pleasure and comfort to our lives but isn't necessary for survival.

Front

How is a need defined?

Back

Something that is necessary for survival.

Front

What are the primary characteristics of a good?

Back

The item is tangible; exclusive and permanent ownership is obtained.

Front

What is the definition of revenue?

Back

The money businesses receive from customers when they buy goods or services.

Front

What is the definition of expense?

Back

Any money spent by a business to buy the capital goods needed to make the goods or deliver the services offered to customers.

Front

The money a business has left at the end of the month after paying ALL their bills. Also known as Net Margin.

Back

Profit

Front

What is the formula for profit?

Back

Revenue - Expense = Profit

Front

If, after applying the profit formula, the net margin is a negative number, the business has suffered a...?

Back

Loss

Front

If, after applying the profit formula, the net margin is zero, or close to zero, the business is at...

Back

Breakeven

Front

At the end of the month, Elizabeth's business has a net margin of $3,124.56. Based on the net margin number, her business...

Back

made a profit