BE Unit 2.00 Test

Front

__________________: the amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells.

Back

cost of goods

Front

__________________: the possibility of loss or failure that occurs as a result of the economy.

Back

economic risks

Front

Amount of income earned by a business prior to paying income taxes.

Back

income

Front

Rivalry between or among businesses that offer similar types of goods or services.

Back

competition

Front

______________: the possibility of loss or failure from human error.

Back

human risks

Front

______________: the type of market, or environment, in which businesses operate.

Back

market structure

Front

______________: a type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available.

Back

monopoly

Front

______________: money left after the cost-of-goods expense and the operating expense are each subtracted from the total income (gross profit - operating expense = NP).

Back

net profit

Front

______________: monetary reward a business owner receives for taking the risk involved in investing in a business; income left once all expenses are paid (income - expense = P).

Back

profit

Front

______________: all of the expenses involved in running a business.

Back

operating expenses