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