Applied Finance Unit 2&3

what is costs?

• is the main objective of any business

• is the money a business receives when it sells a product or service

• is the expense required to acquire or produce something

• is sales revenue less cost.

What is the formula for Profit?

• sales revenue less cost.

• Cost plus revenue less delivery

• liabilities plus equity

• assets plus liabilities

is the money a business receives when it sells a product or service.

• Cost

• Sales revenue

• Profit

• Expense

organizations that works for a cause that serves the common good.

• For Profit

• Not-for Profit

• Partnership

• LLC

The Internal Revenue Code, not-for-profits organizations are sometimes called

• 504(b)(3)

• 504(c)(3)

• 501(b)(3)

• 501(c)(3)

All are a legally recognized not-for-profit except

    

• Girl Scouts and Boy Scouts

• Social service organizations (such as the Red Cross and Habitat for Humanity)

• Religious organizations (such as churches, temples, and mosques)

• Krispy Kreme

Some individual donations come as bequests

• specific provisions in someone’s will

• Donated organs

• A letter requesting a donation

Grants are large donations, which are made by the government or private charitable foundations—which are also not-for-profits! For example, the Bill and Melinda Gates Foundation (the largest private foundation

• True

• False

The earnings on the investment are not taxed, so over a long period of time this grows bigger than the initial investment.

• Grants

• Endowments

• Bequests

When something goes wrong during the production of the item, it is called a

• location-related risk

• social consequences of production

• production-related risk. Your oven fire is a great example of this.

• product or service