POBF 5.02 and 5.03

Which would customers need to present at the time of purchase to get money taken off the purchase price of the item?

• discount coupons

• rebate certificates

• refund checks

• sales receipts

What is a business's net profit if it has $762,750 in income, $291,400 in operating expenses and $238, 930 in cost of goods sold?

• $368,730

• $232,420

• $471,350

• $523,820

Which is an example of a speculative risk?

• a special promotion fails to increase sales

• a supplier's shipment is lost in transit

• a cashier gives unauthorized discounts to friends

• a customer is injured at a business and sues the company

A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?

• Celler-Kefauver Act

• Clayton Act

• Sherman Antitrust Act

• Robinson-Patman Act

When manufacturers give back part of he purchase price of an item to the customer, the manufacturers are engaged in:

• price fixing

• nonprice competition

• clearance sales

• offering rebates

For a business, income remaining after payment of expenses is:

• loss

• capital

• profit

• debt

Which represents a natural risk for the owner of a delivery service?

• snowstorm

• accident

• rising prices

• government intervention

A business selects goods or services to sell. Which type of risk is the business using?

• transferring risk

• controlling risk

• bypassing risk

• avoiding risk

In business terms, what is profit?

• a risky venture

• a good investment

• a holiday bonus

• a monetary reward

Carefully selecting goods or services to sell is an example of handling business risks by ______________ the risk.

• transferring

• controlling

• bypassing

• avoiding