Entrepreneurship Running a Business

What are total expenses?

• All the money for making a business product
• All the money coming into a business
• All the money going out of a business

Profit goals should be:

• The minimum a business needs to achieve.
• A stretch but, not seem impossible to reach.
• The maximum success a business can reach.

When making a business decision between several options, what are you determining when you estimate the opportunity cost?

• The benefits missed when choosing one option over another
• The benefits of choosing the best option
• The benefits of pursuing a new opportunity

If a person buys and eats four hot dogs at the local farmers market, their marginal benefit when eating the fourth hot dog is probably ________ then when eating the first hot dog? Choose the best answer.

• Lower
• Higher
• The Same

Which of the following is the best long-term strategy to reach profitability?

• Lay off employees
• Expand into different markets
• Find new vendors with lower prices
• Cut store hours

What does total revenue minus total expenses indicate?

• The total cost to run the business.
• The total cost to keep the business open.
• The profit or loss made by the business.

Which is the best definition of "marginal benefit?"

• The added satisfaction or benefit a person gets from buying one more product or service.
• The added benefit a person gets to their quality of life from buying one more product or service.
• The added satisfaction or benefit a person gets from a substitute product or service.

Which of the following is the best short-term strategy to cut costs?

• Move to a more affordable location
• Negotiate lower prices with suppliers
• Develop a stronger business network
• Develop different and cheaper products

A business that is making a profit is said to be:

• In the black
• In the red

. If a business's total revenues are more than its total expenses what's happening to the business?

• It is losing money.
• It is making money.
• It is breaking even.
• It is unknown until taxes are paid.