Business Essentials 2.05 Test

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

• determination

• satisfaction

• energy

• influence

Chances of loss that carry with them the possibility of loss or no loss

• Pure risk

• Speculative risk

A risk response strategy that involves trying to reduce the chance of loss or the severity of loss

• Transfer

• Avoidance

• Retention

• Reduction

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

• income and expenses

• expenses and pricing

• pricing and billing

• expenses and billing

To use resources wisely, business owners must reduce

• risk

• reward

• waste

• wages

If a business has a monthly income of $5000 with expenses totaling $3000, what is their profit?

• $8000

• $2000

• $5000

• $15000

In business terms, what is profit?

• a good investment

• A holiday bonus

• a monetary reward

• A risky venture

The possibility of loss from human error

• Natural risks

• Human risks

• Economic risks

• Speculative risks

The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell

• Cost of goods

• Profit

• Competition

• Operating expenses

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

• spent and received

• paid and risked

• received and billed

• estimated and invoiced