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WorksheetsIntroduction to Business
Total questions: 15
Worksheet time: 8mins
An entity that 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
profit
________ 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
employee
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 customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:
market makers.
economic environment.
stakeholders.
social mentors.
The most important difference between for-profit businesses and nonprofit organizations is that:
businesses do not benefit society.
nonprofit organizations seek to make a profit for their owners and organizers.
nonprofit organizations do not seek a profit for their owners or organizers.
nonprofit organizations do not file tax returns.
Last year, Archer Electronics reported revenues of $34 million while its total expenses were $10 million. Based on this information, Archer reported
profits of $24 million.
profits of $34 million.
losses of $24 million.
losses off $34 million.
A common characteristic of most entrepreneurs is that they:
accept the risks involved in starting and managing a business.
have a high level of scientific and technical expertise
possess a great deal of personal wealth.
have experience in running large, complex organizations.
Which of the following is the best example of a business whose goal is to earn a profit?
A community college
The American Red Cross
Boy Scouts of America
Apple
In order to make an intelligent investment decision, entrepreneurs should:
limit their options to those business investments that are backed by the U.S. government.
invest in businesses that have generated a stable rate of profit for at least the past 10 years.
invest only in business opportunities where it is possible to take an active role in management.
compare the risks of potential investments to their expected profits and find the right balance between profit and risk.
