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WorksheetsBE Lesson 2.05
Total questions: 20
Worksheet time: 10mins
In business terms, what is profit?
A monetary reward
A good investment
A holiday bonus
A risky venture
The amount of money paid for raw materials and products sold is called
cost of goods.
operating expense.
net profit.
gross profit.
Gross profit shows business owners the difference between what they’ve
spent and received.
paid and risked.
received and billed.
estimated and invoiced.
Which of the following is a situation in which people are out of work and can’t afford “extra” purchases:
Bad economy
Unexpected event
Bad investment
Negative circumstance
A popular product is said to be
in demand.
late.
out of style.
available.
Which of the factors that affect profit are usually able to be controlled?
Expenses and pricing
Income and expenses
Pricing and billing
Expenses and billing
Which activities are likely to increase a firm’s profit?
Increasing sales and decreasing expenses
Increasing supplies and decreasing production
Decreasing sales and increasing expenses
Decreasing supplies and increasing production
People who go into business know that the business may not succeed. This possibility is referred to as business
risk.
retention.
downsizing.
economizing.
The general classifications of business risks are
competitive, strategic, financial, and operational.
production, hazard, operational, and strategic.
hazard, operational, strategic, and financial.
strategic, production, competitive, and hazard.
What category of business risk includes production problems and incompetent employees?
Operational
Hazard
Strategic
Financial
Which of the following is a pure business risk:
Robbery
Obsolescence
Competition
Inflation
Having well-planned buildings and providing effective employee training are ways that a business can __________ business risks.
transfer
insure against
retain
prevent or control
Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk.
retaining
preventing or controlling
avoiding
transferring
If a risk is small in terms of money, a business may decide to __________ the risk.
transfer
avoid
control
retain
Requiring a contractor to purchase a surety bond is an example of handling business risk by __________ the risk.
transferring
retaining
reducing
preventing
Burger King and McDonald’s are examples of
regulated monopolies
unrelated businesses
dissimilar firms
direct competitors
A business that advertises a special sale as well as its delivery service is using a combination of __________ competition
price and nonprice
direct and indirect
perfect and monopolistic
local and national
Which of the following are qualities of monopolies:
High prices and low production
Low production and much competition
High prices and much competition
Low prices and little competition
Which of the following pieces of legislation prevents monopolies from forming and hinders price fixing:
Clayton Act
Robinson-Patman Act
Sherman Antitrust Act
Celler-Kefauver Antimerger Act
Because of competition, people in our society enjoy
a narrower selection of goods or services
fewer changes in existing goods or services
government control of our economic system and businesses
a higher standard of living than that of people in many other countries
