MBA Billy Bob Vocabulary

Profit is equal to:

• Sales minus costs, especially when sales are greater than costs

• Costs minus sales, especially when costs are greater than sales

• Sales plus costs, regardless of the amounts

• Costs divided by sales, especially when sales are greater than costs

What is the definition of 'Loss'?

• When sales are more than costs.

• When sales are equal to costs.

• When sales are less than costs.

• When there are no sales.

What is a 'Profit & Loss Statement'?

• An accounting of all the costs and sales associated with a business.

• A document detailing the assets and liabilities of a company.

• A report showing the cash inflows and outflows of a business.

• A statement of the company's financial position at a specific point in time.

What does 'Profit Maximization' mean?

• The process of increasing sales volume regardless of cost

• The strategy of minimizing expenses to increase profit

• The process of increasing a firm's profit to the highest possible level

• The method of reducing taxes to maximize net income

What are 'Imports'?

• Goods that are brought INTO a country from outside.

• Goods that are sent OUT of a country to another.

• Services provided within a country.

• Digital products sold online.

What are 'Exports'?

• Goods that are shipped INTO the country from outside.

• Goods that are shipped OUT of the country from inside.

• Services provided within the country.

• Goods that are produced and consumed within the country.

What is 'Free Trade'?

• Goods can pass across your border without restrictions or taxes.

• Goods are heavily taxed when crossing borders.

• Trade is restricted to certain countries only.

• Trade is only allowed for specific goods.

What is 'Specification'?

• A set of standards that specify exactly what a product is.

• A detailed description of a product's design.

• A list of features a product should have.

• A guideline for product usage.

What is 'Fair Trade'?

• A type of trade agreement between countries

• Trade restrictions based on a subjective feeling of 'fairness'

• A global trading system regulated by the WTO

• A method of trading that focuses on environmental sustainability

What is 'Mercantilism'?

• A system of trade in which some industries are favored over consumers and other industries.

• A free market system where supply and demand determine prices.

• A system where government controls all aspects of the economy.

• A trade policy that promotes international cooperation and open borders.