Review for Business Essentials 2.05

In business terms, what is profit?

• a good investment

• A holiday bonus

• a monetary reward

• A risky venture

If expenses are greater then income, there's no

• reward

• risk

• sales

• guarantee

In business terms, income is the money

• produced

• supplied

• spent

• received

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

• operating expenses

• cost of goods

• net profit

• gross profit

The money spent to run a business is called

• operating expense

• cost of goods

• 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

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

• produce

• supply

• keep

• risk

Besides motivation, what does profit provide business owners in particular?

• determination

• satisfaction

• energy

• influence

Which of the following is a general benefit profit provides:

• more products

• better wages

• higher prices

• better supplies

Each purchase strengthens the economy by encouraging

• expansion

• investment

• trade

• competition