BE 2.05 Profit Quiz

In business terms, what is profit?

• A monetary reward

• A good investment

In business terms, income is the money

• received

• spent

The money spent to run a business is called

• operating expense

• cost of goods

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

• Produce

• Keep

Which of the following is a general benefit profit provides:

• Meeting customer needs and wants

• Better supplies

Profitable businesses often help improve their local communities by

• investing in foreign companies.

• contributing to charitable causes.

Which of the following is a situation in which people are out of work and can’t afford “extra” purchases:

• Bad economy

• Unexpected event

Which of the factors that affect profit are usually able to be controlled?

• Expenses and pricing

• Income and billing

Which activities are likely to increase a firm’s profit?

• Decreasing supplies and increasing production

• Increasing sales and decreasing expenses

To use resources wisely, business owners must reduce

• waste

• benefits