Chapter 14 Quiz

A business makes a _______ when the money coming in from sales is larger than the business’s expenses.

• overhead

• profit

• expense

• profit motive

Business expenses are often called ________________

• overhead

• profit

• credit

• debt

The _____________ is an incentive that encourages entrepreneurs to take business risks in the hope of making a profit.

• overhead

• operating expenses

• credit

• profit motive

The _____________ is a calculation of the profit (or loss) for each unit of sale made by a business.

• economics of two units

• economics of one unit

• economic profits

• economic growth

The formula for Profit (or Loss) is:

• Sales Price / Cost = Profit (or Loss)​

• Sales Price * Cost = Profit (or Loss)​

• Sales Price + Cost = Profit (or Loss)​

• Sales Price – Cost = Profit (or Loss)​

The formula for Profit % is:

• (Profit/Sales Price) × 100 = Profit %

• (Profit/Sales Price) / 100 = Profit %

• (Profit/Sales Price) - 100 = Profit %

• (Profit/Sales Price) + 100 = Profit %

Finding the perfect price for your products or services is an important component to the entrepreneurial mindset skill of navigating business risk.

• True

• False

• Competition is common in a market economy.​

• True

• False

If one supplier lowers the price of a good or service, consumers will typically _____ from that supplier rather than from other suppliers.

• sell

• trade

• buy

• profit from

__________ between consumers for the same or similar products pushes prices upward in a market economy.

• Competition

• Harmony

• Strategy

• Bargin shopping