What is a Business?

What is the primary purpose of a business?

• To provide goods and services

• To earn a profit

• To make a difference

• To explore space.

A business can be described as:

• A type of technology

• provides and sells products to meet the wants and needs of customers

• items sold that are tangible, meaning that you can physically touch/own them

• you get paid to do something for someone. They are intangible meaning you can’t physically touch it.

What is NOT a function of a business?

• Selling products

• Meeting customer needs

• Providing free services

• Selling services

Which of the following is an example of a 'Service'? Select all that Apply

• Book

• Car

• Snacks

• Haircut

Which of the following is an example of a 'Good'? Select all that apply

• Book

• Car

• Car Repair

• Haircut

What is a reason for starting a business that involves innovation, according to Mrs. Vetter's list?

• Creating innovative products

• Buying a new car

• Traveling

• Learning a new language

Which of the following statements is true about profit calculation?

• Profit is calculated by adding total revenue and total expenses

• Profit is the difference between total revenue and total expenses

• Profit is the product of total revenue and total expenses

• Profit is the sum of total revenue and total expenses.

What is the profit if the revenue is $150,000 and costs are $120,000?

• $30,000

• $25,000

• $35,000

• $40,000

Which of the following is the best definition of REVENUE?

• The total amount of income a business makes from selling products or services
• The amount of money a business has LEFT over after paying for their costs.
• The total amount of money a business spends.
• The amount of money a business loses every month.

Which of the following is the best definition of COSTS?

• The total amount of income a business makes from selling products or services
• The amount of money a business has left over after paying for materials.
• The total amount of money a business spends.