Entrepreneurship 12 Module 9

What is the formula to calculate profit?

• Sales / Cost of Goods Sold = Gross Profit

• Sales x Cost of Goods Sold = Gross Profit

• Sales + Cost of Goods Sold = Gross Profit

• Sales - Cost of Goods Sold = Gross Profit

Which of the following is considered a variable cost in a business?

• Office expenses

• Salaries and wages of office staff

• Materials used

• Advertising expenses

What is the purpose of setting up an accounting system in a business?

• To increase expenses

• To avoid taxes

• To measure performance

• To reduce profit

Which government agency is responsible for issuing Mayor's Business Permit?

• Local city or municipality

• Department of Trade and Industry

• Securities and Exchange Commission

• Bureau of Internal Revenue

What is the main reason for securing insurance for a business?

• To reduce employee benefits

• To increase liabilities

• To protect the business in case of litigation

• To avoid customers

What are the basic requirements to start a business in the Philippines?

• Registration with the Securities and Exchange Commission

• SSS, PhilHealth, and Pag-Ibig Fund registration

• Registration with the Department of Agriculture

• Health insurance, fire insurance, and auto insurance

What is the purpose of consulting professionals like accountants before starting a business?

• To get advice and guidance

• To reduce profit

• To increase expenses

• To avoid taxes

What is the difference between variable costs and fixed costs in a business?

• Fixed costs are always higher than variable costs

• Fixed costs change based on production, variable costs are static

• Variable costs are always higher than fixed costs

• Variable costs change based on production, fixed costs are static

Why is good record keeping important for a business?

• To increase expenses

• To avoid legal requirements

• To measure profit and performance

• To reduce liabilities

What is the main objective of an entrepreneur when putting up an enterprise?

• To reduce profit

• To realize his purpose

• To avoid taxes

• To increase expenses