Introduction to Business Fundamentals Flashcard

Front

Which of the following statements is true about businesses?
Options:
All businesses are for-profit entities
Businesses can only be non-profit organizations
Businesses can be for-profit entities or non-profit organizations
Businesses do not provide services

Back

Businesses can be for-profit entities or non-profit organizations

Front

If a business earns $10,000 in income and has $7,000 in expenses, what is the profit?

Back

$3,000

Front

What does it mean when a business reports a "loss"?

Back

The business brings in less money than it needs to cover expenses.

Front

Under which circumstance might a business report a "loss"?

Back

When its revenue is less than forecasted or last year's YTD revenue.

Front

What is the definition of an entrepreneur?

Back

A person who risks their time, money, and resources to start and manage a business.

Front

Which of the following best describes the degree of wealth or quality of life available in a community? Standard of living, Population density, Economic growth rate, Literacy rate

Back

Standard of living

Front

What does "quality of life" refer to?

Back

The overall sense of well being experienced by either an individual or a group

Front

Why is quality of life an important consideration in financial decisions?

Back

It measures happiness and well-being, which are important for making financial choices.

Front

Identify which of the following best describes a measure of happiness that influences financial decisions: Quality of life, Net income, Market share, Tax rate.

Back

Quality of life

Front

Which of the following best describes the purpose of most churches, Goodwill, and the Red Cross?
Options:
To work for the public good rather than making a profit,
To compete for the highest profits,
To sell products at the lowest price,
To provide loans to businesses

Back

To work for the public good rather than making a profit