Lesson 1.1 - Business and Profits

What is the definition of 'Profit'?

• Earnings or revenue

• Money left over after all the costs of doing business have been deducted.

• When costs are higher than revenue

• Money spent

Which of the following is a service?

• Clothing

• Haircut

• Construction Vehicle

• Coal

What is the role of a manufacturer?

• Takes resource from nature
• Buys goods
• Sells goods
• Creates product from raw materials

What is Business?

• A place to buy things

• Any profit seeking organization

• Where customers go to buy

Expenses are......

• The cost incurred by running a business such as materials, rents, and salaries

• Money spent by customers

• Money the firm collects from selling their goods or services

The price at which goods or services are offered by a business to their customers is called

• Selling price

• Cost

• Revenue

• Currency

A negative difference between the revenues taken in by a business and the costs of operating a business results in the firm earning a ___________

• Profit

• Breakeven Amount

• Loss

• Closed Account

Revenue = $80,000

Cost of sales = $35,000

Other expenses = $15,000

What is the profit?

• $80,000

• $30,000

• $50,000

• • -$30,000

Which formula calculates profit.

• Revenue - Expenses = Profit

• Expenses - Revenue = profit

• Selling Price - Expenses = profit

• Revenue + Expenses = Profit

Which of the following is NOT considered a "good"?

• UberEats Delivery

• 3 crunchy tacos from Taco Bell

• A new pair of shoes

• A laptop