Basics of Business Quiz

An entrepreneur is a person who starts their own ____.

The amount of money remaining after expenses is called _.

A company's written plan outlining how it will achieve its goals is known as a _.

When a business is the only provider of a product or service, it has a _.

A document that outlines the responsibilities and powers of a company's shareholders, directors, and officers is called the ___.

Why is a business plan important for entrepreneurs?

• A business plan is unnecessary and a waste of time for entrepreneurs
• A business plan is important for entrepreneurs because it helps outline the goals, strategies, and financial projections of the business. It provides a roadmap for the entrepreneur to follow and helps attract investors or secure loans.
• Entrepreneurs should rely solely on intuition and not plan ahead
• Financial projections in a business plan are always accurate and do not need adjustments

Describe the difference between a profit and a loss for a business.

• Profit is when revenue exceeds expenses, while a loss is when revenue equals expenses.
• Profit is when revenue equals expenses, while a loss is when expenses exceed revenue.
• Profit is when revenue exceeds expenses, while a loss is when expenses exceed revenue.
• Profit is when expenses exceed revenue, while a loss is when revenue exceeds expenses.

How does competition benefit consumers in the business world?

• Competition leads to monopolies, reducing consumer choices.
• Competition drives innovation, improves quality, and lowers prices.
• Competition hinders progress and innovation in the market.
• Competition results in collusion among businesses, leading to higher prices.

What is the main goal of a corporation?

• Maximize profits for shareholders

• Keep expenses low

• Avoid competition

• Minimize employee benefits

What is the purpose of a business plan?

• To track employee hours

• To outline how a business will achieve its goals

• To set the price of products

• To organize a company party