BizWorld Pre/Post Assessment

How can a company know that it made a profit?

• It didn't sell out all of it's products.

• It earned the most revenue during sales.

• It earned more money in revenue than it spent in expenses.

• It didn’t sell too many shares of stock to the venture capitalists.

Why is it important to keep careful records of all your finances?

• To know the amount of money I can borrow from the bank.

• To compare my company’s money with other companies.

• To report to the local authorities and value my company.

• To have clarity of how much you have and can spend.

What does a venture capitalist receive in exchange for investing in a company?

• A promise to repay the loan plus interest.

• Shares of stock in the company and a vote in decision-making.

• Just shares of stock in the company.

• A portion of company products and services.

What is the profit equation?

• Expenses + Profit = Revenue

• Rent – Interest = Profit (or Loss)

• Revenue – Expenses = Profit (or Loss)

• Expenses x Revenue = Profit

Money a company earns from selling a product or service is called:

• Revenue

• Profit

• Capital

• Cash on Hand

When deciding on a price for a product, what factor(s) should a company consider?

• The complexity of the production.

• Cost of production and materials.

• The perceived value of the product.

• The actual value of the product.

___________is money left after all expenses of running a business have been deducted from the income.

• Profit
• Capital
• Cost
• Surplus

The role of manufacturing is:

• To make the product easily and inexpensively.

• To sell the product.

• To manage smooth operations of the company.

• To promote the product.

What is a business primarily aimed at?

• Providing services only

• Making a profit

• Supporting charities

• Creating jobs

Answer explanation

Business is about making a profit which means you earn more money than you spend....

If a company sells shares of stock, the company is:

• Taking out a loan from the venture capitalist.

• Receiving money with no other requirements.

• Losing a part of the ownership of the company in exchange for money.

• Making a promise to pay back the venture capitalist within a year.