Business EC-002

In business terms, what is profit?

• A monetary reward

• A holiday bonus

• A good investment

• A risky venture

If expenses are greater than income, there’s no

• guarantee.

• sales

• risk.

• reward.

In business terms, income is the money

• supplied.

• spent.

• produced.

• received.

The amount of money paid for raw materials and products sold is called

• net profit.

• gross profit.

• cost of goods.

• operating expense.

The money spent to run a business is called

• cost of goods.

• operating expense.

• net profit.

• gross profit.

Gross profit shows business owners the difference between what they’ve

• paid and risked.

• received and billed.

• spent and received.

• estimated and invoiced.

Business owners are usually interested in net profit because they want to know what they can

• risk.

• supply.

• produce.

• keep.

Besides motivation, what does profit provide business owners in particular?

• Determination

• Energy

• Influence

• Satisfaction

Which of the following is a general benefit profit provides:

• Higher prices

• More products

• Better supplies

• Better wages

Each purchase strengthens the economy by encouraging

• trade.

• investment.

• expansion.

• competition.