qtkd c1 p1

An activity which seeks to earn a profit by providing a good or service is known as a(n):

• industry.

• corporation.

• business.

• service.

__________ is the amount a business earns after deducting what it spends for salaries and other expenses.

• Profit

• Revenue

• Interest

• Dividends

A business incurs a ___________ if its costs and expenses exceed its revenues.

• loss

• liability

• debit

• dividend

__________ is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable.

• Depreciation

• Risk

• Fallibility

• Redundancy

The total amount of money that businesses take in by selling goods and services is called ________.

• profit

• revenue

• loss

• retained earnings

A(n) ____________ is a person who assumes the risk of starting a business.

• manager

• entrepreneur

• private investor

• stakeholder

Starting a business always involves ________.

• profit

• loss

• revenue

• risk

Often in business the greater the risk, the ____________.

• greater the potential reward

• lower the expected revenues

• lower the value provided to society

• greater the number of stakeholders

___________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment.

• Standard of living

• Quality of life

• Gross national income

• Social satisfaction index

The amount of goods and services people can buy with the money they have is called their:

• nominal income.

• consumer price index.

• profit margin.

• standard of living.