BE Unit 2.00 Practice Test

__________________: the rivalry between two or more businesses to attract scarce customer dollars.

• competition
• economic risks

• profit motive

__________________: the amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell; the amount of money a business pays for the products (or for any part of the products) it sells.

• cost of goods
• profit motive

• income

__________________: the possibility of loss or failure that occurs as a result of the economy.

• economic risks
• natural risks

• human risks

The possibility of loss (failure) or gain (success) inherent in conducting business.

• business risk
• natural risk

• economic risk

Amount of income earned by a business prior to paying income taxes.

• income
• cost of goods

• transfer

The money that a business spends.

• expenses
• gross profit

• income

Rivalry between or among businesses that offer similar types of goods or services.

• competition
• indirect competition

• direct competition

______________: the possibility of loss or failure from human error.

• human risks
• natural risks

• economic risks

______________: a type of rivalry between or among businesses that involves factors other than price.

• nonprice competition
• profit

• operating expenses

______________: the type of market, or environment, in which businesses operate.

• market structure
• monopoly

• olipopoly