Profit and Loss

What is a lease?

• full of small holes that lets water or gas pass through

• a tough band of tissue that connects bones together

• an agreement between an owner and a tenant to rent a property for a specific time and amount of money

Thanks to the ___________________ of everyone on our team, we were able to win the state championships.

• lessons

• cooperation

• esteem

My dad's _____________ goes up a little every year because the company where he works pays their employees very well.

• salary

• estate

• chapter

What is a profit?

• a record of money earned and spent

• a very powerful force that can destroy anything in its way

• the amount of money left after all the costs of running a business have been subtracted from all the money earned

In the passage, a business may have a financial loss. What does the word financial mean?

• describing the use and management of money

• something that is so simple to use that anyone can do it

• something that is moving away from the center

How does a business determine if it has made a profit?

• by adding the expenses it has with the money it has earned

• it subtracts all its expenses from the money it has earned

• it adds up the amount of sales it had for the year

What are expenses?

• the workers or employees of a company

• bills that must be paid

• the amount of money customers spend at a business

What are some things a company might do with its profits?

• pay more in taxes to the government

• fire its workers so the profit for the company would increase

• create more products to sell or buy better equipment

How does a company experience a financial loss?

• if a business does not have enough expenses

• when the taxes the company must pay to the government are too expensive

• if the company earns less money that the expenses owed

What does it take for a business to be successful?

• it takes hard work, the cooperation of others, and wise decisions about what to do with money

• it's hard to tell how to make a business successful because there are no guarantees that a company will earn a profit

• lots of employees, a big store to work in, and shelves full of products for people to buy