Business Essentials 2.05 Day 1 - 2

In business terms, what is profit?

• A monetary reward

• A good investment

• A holiday bonus

• A risky venture

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

• cost of goods.

• operating expense.

• net profit.

• gross profit.

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

• spent and received.

• paid and risked.

• received and billed.

• estimated and invoiced.

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

• Bad economy

• Unexpected event

• Bad investment

• Negative circumstance

A popular product is said to be

• in demand.

• late.

• out of style.

• available.

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

• Expenses and pricing

• Income and expenses

• Pricing and billing

• Expenses and billing

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

• Increasing sales and decreasing expenses

• Increasing supplies and decreasing production

• Decreasing sales and increasing expenses

• Decreasing supplies and increasing production

People who go into business know that the business may not succeed. This possibility is referred to as business

• risk.

• retention.

• downsizing.

• economizing.

Burger King and McDonald’s are examples of

• regulated monopolies

• unrelated businesses

• dissimilar firms

• direct competitors

A business that advertises a special sale as well as its delivery service is using a combination of __________ competition

• price and nonprice

• direct and indirect

• perfect and monopolistic

• local and national