Chapter 16 Review

In a ___, people are free to choose what they buy, what they produce and sell, and where they work.

• Communist country

• free enterprise system

• bartering system

A ___ focuses on how one should advertise and promote a business.

• financial plan

• marketing plan

• business plan

__ is a written outline of a business venture that describes all aspects of the business.

• business plan

• financial plan

• marketing plan

A ___ outlines the essential financial elements for starting and running a business.

• business plan

• financial plan

• marketing plan

Which of the following is NOT one of the 4 guidelines you should follow when setting financial/personal goals.

• be realistic

• make you super rich

• be specific

• a clear time frame of when you will reach the goal

Which of the following is NOT one of the two things a business must do to survive.

• operate at a profit

• attract and keep individuals who are willing to take the risk of running the business

• take out loans to pay for business expenses

a systematic process of recording and reporting the financial position of a business.

• assets

• accounting

• profit margin

• transaction

any activity that has an effect on the financial situation of a business.

• assets

• accounting

• profit margin

• transaction

Something valuable that an entity owns, benefits from, or has use of, in generating income.

• assets

• accounting

• profit margin

• transaction

Money spent or cost incurred in an organization's efforts to generate revenue, representing the cost of doing business.

• profit

• expenses

• revenue

• cash flow