Business Essentials Vocab Practice (2.05)

Match the following

• The system in which people make and spend their incomes

• Gross Profit

• Monies that individuals or businesses must pay to the government

• Profit Motive

• Money left after the cost-of-goods expense is subtracted from total income

• Efficiency

• Accomplishing a task with a minimum expenditure of time and effort

• Taxes

• The desire to make a profit, which moves people to invest in business

• Economy

Reorder the following by defining "Risk".

• or

• of

• the possibility

• loss

• failure

____________ is the amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells.

• Cost of Goods

• Income

• Net Profit

• Profit

___________ is the money received by resource owners and by producers for supplying goods and services to consumers.

• Cost of Goods

• Income

• Net Profit

• Profit

________________ is money left after the cost-of-goods expense and the operating expense are each subtracted from the total income.

• Cost of Goods

• Income

• Net Profit

• Profit

_________ is monetary reward a business owner receives for taking the risk involved in investing in a business.

• Cost of Goods

• Income

• Net Profit

• Profit

Creditors are individuals or businesses to whom a business (a)   or from whom it wants to borrow money.

Operating Expenses are all of the ​ (a)   involved in ​ (b)   a business.

• expenses
• running

Reorder the following by defining "Operating Expenses".

• involved in

• expenses

• a business

• all of the

• running

Reorder the following by defining "Expenses".

• the

• money

• business

• that a

• spends