Capital, Turnover and Profit 2

What is the primary difference between gross profit and net profit?

• Net profit is the total revenue minus gross profit.
• Net profit is calculated before deducting expenses; gross profit is after.
• Gross profit includes all revenues; net profit does not.
• Gross profit is calculated before deducting expenses; net profit is after.

What is the definition of profit in a business context?

• The amount remaining after all expenses are deducted.
• The money invested in physical assets.
• The total revenue generated from sales.
• The total costs incurred by a business.

If a business has a gross profit of $12,000 and total expenses of $4,000, what is its net profit?

• $8,000
• $12,000
• $16,000
• $4,000

How does an increase in turnover typically affect a business's profit?

• It usually decreases profit margins.
• It generally increases profit margins.
• It only affects gross profit.
• It has no effect on profit margins.

If a restaurant has a turnover of $20,000 and total expenses of $25,000, what is its net profit?

• $5,000 profit
• $5,000 loss
• $20,000 profit
• $25,000 loss

Which type of capital is represented by the skills and knowledge of employees?

• Financial Capital
• Physical Capital
• Social Capital
• Human Capital

What is the definition of capital in a business context?

• The skills and knowledge of employees.
• The money and resources used to fund operations.
• The total sales a business makes in a year.
• The profit remaining after all expenses are deducted.

Why is understanding capital, turnover, and profit important for business success?

• It helps in attracting more customers.
• It allows for better management of resources and financial health.
• It guarantees higher sales every year.
• It ensures all employees are well trained.

What does the term 'turnover' indicate about a business?

• It indicates the amount of capital invested.
• It shows the total profit made.
• It reflects the revenue generated from sales.
• It measures employee performance.

If a coffee shop has a turnover of $6,500 and total expenses of $7,000, what is its net profit?

• $500 profit
• $500 loss
• $6,500 profit
• $7,000 loss