Business Essentials 2.05 P1

Front

The money that a business spends

Back

Expense

Front

The possibility of loss from human error

Back

Human risks

Front

A risk response strategy that involves choosing not to do something that is considered risky

Back

Avoidance

Front

The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell

Back

Cost of goods

Front

Money left after the cost of goods expense and operating expense are each subtracted from the total income

Back

Net profit

Front

Chances of loss that carry with them the possibility of loss or no loss

Back

Pure risk

Front

A risk response strategy that involves trying to reduce the chance of loss or the severity of loss

Back

Reduction

Front

Monetary reward a business owner receives for taking the risk involved in investing in a business

Back

Profit

Front

If a business has a monthly income of $5000 with expenses totaling $3000, what is their profit?

Back

$2000

Front

The desire to make a profit, which moves people to invest in business

Back

Profit motive