2.05 Factors Affecting Profit - CLASSWORK

What is a potential benefit of businesses competing with each other?

• Decreased consumer choice

• Increased prices

• Meeting consumer needs faster

• Reduced product quality

How does profit allow businesses to offer benefits?

• By reducing costs

• By increasing taxes

• By providing financial resources

• By limiting employee growth.

What is one way profit can be used to improve products?

• By reducing innovation

• By investing in development

• By cutting research funding

• By limiting consumer feedback

How is risk involved in calculating profit?

• Risk is not involved in profit calculation.

• Risk affects the potential for profit.

• Risk increases the total expenses.

• Risk decreases the total income.

Name two benefits profit provides business owners.

• Motivation and satisfaction.

• Loss and debt.

• Risk and uncertainty.

• Taxes and regulations.

What happens to a business without profit?

• It can only last a short while.

• It will thrive and expand.

• It will have unlimited resources.

• It will not need to pay employees.

Why is profit important for businesses?

• It allows businesses to meet consumer needs and provide employment.

• It increases the total expenses.

• It decreases the total income.

• It is not important for businesses.

Why might a business shut down without profit?

• It has no way to pay its employees, suppliers, or creditors.

• It will have unlimited resources.

• It will thrive and expand.

• It will not need to pay employees.

What is one factor that Cory cannot control which affects his profit?

• The number of cookies he bakes

• The economy

• The price he sets

• The ingredients he uses.

What can Cory hope for to increase his profit?

• A decrease in cookie prices

• An increase in customer spending

• A new cookie recipe

• More baking time.