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4.3 - Operating A Small Business

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of the following would be an example of an expense for a business?

a)

Paying staff wages

b)

Selling a product

c)

Renting an apartment to your tenant

d)

Collecting interest on an investment

2.

Which of the following would be an example of revenue for a business?

a)

Paying rent

b)

Selling a product

c)

Paying for utilities

d)

Buying supplies to make your product

3.

Which situation would result in a business having a profit?

a)

If the owner buys matching uniforms

b)

If the revenue is less than the expenses

c)

If the revenue is greater than the expenses

d)

If the owner buys coffee for the employees every morning

4.

What is the average monthly revenue for this business (assuming it is only open 4 months every year)?

a)

$320.83

b)

$3850

c)

$15400

d)

$962.50

5.

What is the average monthly revenue for this business (for the 4 months that the business is open)?

a)

$190

b)

$172

c)

$760

d)

$63.33

6.

What does it mean when a company reports a "loss"?

a)

The factory is producing less

b)

the company's expenses are more than its revenues

c)

the company's revenues are more than its expenses

d)

The company's CEO quit

7.

What does "net income" mean?

a)

How many lobsters a fisherman can catch in a day

b)

Total profit or loss after adding expenses and revenue

c)

Total profit or loss after subtracting expenses from revenue

d)

Total revenue from the internet

8.

A business has an annual revenue of $95 126. If the annual expenses are $56 178, did the company experience a profit, a loss, or broke even for that year?

a)

Not enough information given

b)

Loss

c)

Broke even

d)

Profit

9.

A business experienced a loss of $32 450. If the revenue was $56 890, then what are the expenses for the year?

a)

$89 340

b)

$24 440

c)

$64 900

d)

$113 780

10.

A business spends $65 723 in a year. What exact revenue would allow the business to meet the "break-even point"?

a)

$70 000

b)

$65 723

c)

$60 000

d)

More than $100 000