LAP EC 910

In business terms, what is profit?

• A good investment

• A holiday bonus

• A monetary reward

• A risky venture

If expenses are greater than 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 expense

• 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

• received and billed

• paid and risked

• 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