Business Concepts Quiz

What is the Free Enterprise System?

• A system in which individuals are free to produce the goods and services they choose.

• A system where the government controls all production.

• A system where only large corporations can produce goods.

• A system where production is based on communal decisions.

What is Profit?

• The amount earned above the amount of expense incurred to keep the business operating.

• The total revenue of a business.

• The total expenses of a business.

• The amount of money lost in a business.

What is Loss?

• The result when a business spends more money than it earns.

• The result when a business earns more money than it spends.

• The total revenue of a business.

• The total profit of a business.

Who is an Entrepreneur?

• A person who transforms ideas for products or services into real-world businesses.

• A person who works for a large corporation.

• A person who only invests in businesses.

• A person who manages a business but does not own it.

What is Capital?

• Money supplied by investors, banks, or owners of a business.

• The total revenue of a business.

• The total expenses of a business.

• The profit earned by a business.

What is a Service Business?

• A business that provides a needed service for a fee.

• A business that buys finished goods and resells them.

• A business that buys raw materials and transforms them into finished products.

• A business owned by one person.

What is a Merchandising Business?

• A business that buys finished goods and resells them to individuals or other businesses.

• A business that provides a needed service for a fee.

• A business that buys raw materials and transforms them into finished products.

• A business owned by one person.

What is a Manufacturing Business?

• A business that buys raw materials, transforms them into finished products by using labor and machinery, and sells the finished products to individuals or other businesses.

• A business that buys finished goods and resells them.

• A business that provides a needed service for a fee.

• A business owned by one person.

What is a Sole Proprietorship?

• A business owned by one person.

• A business owned by two or more persons.

• A business that buys finished goods and resells them.

• A business that provides a needed service for a fee.

What is a Partnership?

• A business owned by two or more persons, called partners, who agree to operate the business as co-owners.

• A business owned by one person.

• A business that buys finished goods and resells them.

• A business that provides a needed service for a fee.