BASIC CONCEPTS IN BUSINESS AND MANAGEMENT

The contributions of the owners are considered as income.

• TRUE

• FALSE

Answer explanation

The contributions of the owners are NOT considered as income.

Income is the money you generate.

If you already have it, it is not an income, it is a capital, YOUR CAPITAL.

Capital is the money allocated by an entrepreneur to start a business.

• TRUE

• FALSE

Answer explanation

As we said before, it is the money you already have and put it into work for your business.

a)    The 4P’s in Marketing Mix are “product”, “price”, “place” and “promotion".

• TRUE

• FALSE

Answer explanation

WHAT IS THE DEFINITION OF INCOME?

• The quantity of money or goods you generate for the price of your product or service.

• The disbursement to start a business.

• The point at which the business sells enough products to cover all its expenses.

WHAT IS THE DEFINITION OF COSTS?

• The level of sales in which there are no losses or profit.

• The money received whether through the sales that a business has, or through salary.

• The disbursements that the business makes to produce a product or service.

WHAT IS THE DEFINITION OF EXPENSES?

• The quantity of money you generate for the price of your product or service.

• The legal regulations in any business.

• The disbursement that the business must make to carry out activities.

WHAT IS THE DEFINITION OF INVESTMENT?

• The money received whether through the sales that a business has, or a salary.

• The commissions received through sales.

• The effort to generate a profit that consists of assigning a capital to a business.

WHAT IS THE DEFINITION OF THE BREAK-EVEN POINT?

• The point at which the business sells enough products to cover all its expenses and costs.

• The money determined for the creation of a new business.

• The payment a person gives to another for executing a certain sale.

WHICH OF THESE IS AN EXAMPLE OF COSTS?

• The sales of a business.

• The use of raw material in production.

• The salaries of administrative staff.

WHICH OF THESE IS AN EXAMPLE OF EXPENSES?

• The contributions of the owners.

• The commissions received in sales.

• The office rent.