Review

What is a business?

• Activity that provides goods to consumers and making profit.

• Activity that focus on delivering services to consumers and making profit

• Any activity that provides goods or services to consumers for the purpose of making a profit.

• Any activity that provides goods and services to consumers without generate profits.

___________ is the amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business.

• Sale

• Profit

• Cost

• Debt

How do you define profit?

• when revenue exceeds cost

• when costs exceed revenue

• when revenue achieves planned target

• when the bottom line is in the red

How do you define loss?

• when costs fall lower than projection

• when the bottom line is in the black

• when revenue exceeds costs

• when costs exceed revenue

Which one is NOT TRUE about non-profit business?

• Generates revenues from sales and/or contributions

• Operated by board of directors, trustees, or managers

• Profits are not subject to taxation by local, state, and federal authorities

• Owned by individuals, partners, or shareholders

Factors of production are below, EXCEPT

• Entreprenurship

• Capital

• Equipment

• Labor

Which functional area of a business is responsible for converting the factors of production into goods and services?

• Management

• Marketing/Sales

• Operations

• Research and Development

A __________________ is an organization that exists to achieve some goal other than the usual business goal of profit.

• profit organization

• non-profit organization

• NGO

• government

____________ is a business that is established, owned, operated, and often financed by one person.

• Partnerships

• Sole Proprietorships

• Franchising

• Corporations

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship

• Partnership

• Corporation

• Franchise