5. Business Concepts Quiz

What is gross profit?

• The net income after taxes

• The total revenue of a business

• The total expenses of a business

• The amount by which sales exceeds cost of sales

What does the gross profit margin represent?

• Net profit expressed as a percentage of sales

• Total revenue expressed as a percentage of expenses

• Gross profit expressed as a percentage of sales

• Total expenses expressed as a percentage of revenue

What does ICT stand for?

• International Communication Technology

• Information and Communication Technology

• Information and Computing Technology

• Integrated Communication Tools

What is an index number used for?

• To determine the net profit of a company

• To calculate the total revenue of a business

• To measure the efficiency of a production process

• To show the price/cost of something compared with its price at a specific earlier date

What are indirect costs also known as?

• Variable costs

• Fixed costs

• Direct costs

• Overheads

What is indirect distribution?

• The product is distributed through a single retail outlet

• The product passes through at least one other stage in addition to seller and buyer

• The product is distributed through online channels only

• The product is sold directly from seller to buyer

What is the purpose of induction training?

• To provide ongoing professional development

• To assess the performance of new employees

• To train employees in advanced technical skills

• To enable new employees to become settled and efficient quickly

What is innovation in a business context?

• A new method, process or procedure that helps business efficiency/growth

• An increase in employee salaries

• A reduction in production costs

• A decrease in product prices

What is an intensive distribution channel?

• Selling through a limited number of high-end stores

• Selling through a single exclusive outlet

• Selling only through online platforms

• Selling through as many outlets as possible

What does inventory refer to?

• The cash reserves of a company

• The total assets of a company

• Stock items for use in production or available for resale

• The financial liabilities of a business