5.02c- business profit student briefing

In business terms, what is profit?

A monetary reward

Which activities are likely to increase a firm's profit?

Increasing sales and decreasing expenses

Which of the following is a situation in which people are out of work and can't afford "extra" purchases:

bad economy

Which of the following is a general benefit profit provides:

better wages

For each new product it offers, a business seeks

buyers

Profitable businesses often help improve their local communities by

contributing to charitable causes.

The amount of money paid for raw materials and products sold is called

cost of goods

When employees are working faster or better, they are increasing their

efficiency

Which of the factors that affect profit are usually able to be controlled?

expenses and pricing

A popular product is said to be

in demand

Business owners are usually interested in net profit because they want to know what they can

keep

Businesses must be careful about increasing the prices of their goods to increase profits because the result may be that they

lose sales to competitors.

The money spent to run a business is called

operating expense

In business terms, income is the money

received

If expenses are greater than income, there's no

reward

Besides motivation, what does profit provide business owners in particular?

satisfaction

If no profit is generated for an extended period, a business must

shut down

Gross profit shows business owners the difference between what they've

spent and received

Each purchase strengthens the economy by encouraging

trade

to use resources wisely, business owners must reduce

waste