Financial Terms Quiz (Shark Tank)

What is the break-even point?

• The point at which total cost and total revenue are equal

• The point at which total cost is greater than total revenue

• The point at which total cost is less than total revenue

• The point at which total revenue is zero

What is capital in the context of business?

• The price of a product when sold to the end consumer

• The portion of a market controlled by a particular company or product

• Wealth in the form of money or assets owned by a business

• Debt owed by a company

What does convertible debt refer to?

• A loan that can be converted into cash at a later date

• A loan that can be converted into inventory at a later date

• A loan that can be converted into revenue at a later date

• A loan that can be converted into equity at a later date

What is due diligence in the context of investment?

• The difference between the cost of producing a product and its selling price

• The method or process by which a product or service is delivered to customers

• The capacity for a business to grow and manage increased demand

• An investigation or audit of a potential investment

What is equity in the context of business?

• The income generated from the sale of goods or services

• The price of a product when sold in bulk

• The ownership interest in a company

• The total amount of money being transferred into and out of a business

What is a franchise?

• The total profit after all expenses have been deducted from revenues

• An authorization given by a company allowing a third party to conduct certain commercial activities

• A flexible loan from a bank or financial institution

• The reduction in the value of an asset over time

What is margin in the context of business?

• The difference between the cost of producing a product and its selling price

• The portion of a market controlled by a particular company or product

• The price of a product when sold to the end consumer

• The capacity for a business to grow and manage increased demand

What is net profit?

• The capacity for a business to grow and manage increased demand

• The payment to the owner for the use of property

• The monetary value assigned to a company

• The actual profit after working expenses have been paid

What is a purchase order (PO)?

• The price of a product when sold in bulk

• A buyer-generated document that authorizes a purchase transaction

• The total amount of money being transferred into and out of a business

• The difference between the cost of producing a product and its selling price

What is revenue in the context of business?

• The income generated from the sale of goods or services before any costs or expenses are deducted

• The capacity for a business to grow and manage increased demand

• The method or process by which a product or service is delivered to customers

• The ownership interest in a company