Commerce Quiz

What is the law of supply and demand?

• The law of supply and demand states that prices increase when both supply and demand are low

• The law of supply and demand states that prices are fixed regardless of supply and demand

• The law of supply and demand states that the price of a good or service will vary based on its availability (supply) and the desire for it (demand). When supply is high and demand is low, prices tend to decrease. Conversely, when supply is low and demand is high, prices tend to increase.

• The law of supply and demand states that prices only depend on supply, not demand

Define profit and loss.

• Profit is the financial gain made, while loss is the financial gain made.

• Profit is the financial deficit incurred, while loss is the financial gain made.

• Profit is the financial gain made in a transaction, while loss is the financial deficit incurred.

• Profit is the financial loss incurred in a transaction, while loss is the financial gain made.

What are the components of financial statements?

• Balance sheet, income statement, cash flow statement, statement of changes in equity

• Equity report

• Profit statement

• Revenue summary

Explain the concept of entrepreneurship.

• Entrepreneurship is the process of investing in existing businesses.

• Entrepreneurship is solely focused on making losses rather than profits.

• Entrepreneurship is the process of designing, launching, and running a new business, often initially a small business. It involves taking financial risks in the hope of making a profit.

• Entrepreneurship involves avoiding financial risks to ensure stability.

What is commerce?

• Commerce is a form of transportation.

• Commerce is the activity of buying and selling goods and services.

• Commerce is the study of marine life.

• Commerce is a type of dessert.

What happens to price when demand increases?

• Remains constant

• Becomes unpredictable

• Price increases

• Price decreases

How is profit calculated?

• Profit = Total Revenue - Total Cost

• Profit = Total Revenue x Total Cost

• Profit = Total Revenue / Total Cost

• Profit = Total Revenue + Total Cost

What is the purpose of an income statement?

• The purpose of an income statement is to show a company's financial performance over a specific period, typically a quarter or a year.

• To calculate employee salaries

• To determine the company's market share

• To predict future stock prices

What qualities make a successful entrepreneur?

• Overconfidence, lack of creativity, poor work ethic

• Inflexibility, laziness, fear of failure

• Introversion, lack of passion, aversion to risk-taking

• Creativity, resilience, adaptability, strong work ethic, passion, and the ability to take calculated risks.

Differentiate between revenue and expenses.

• Revenue is the costs, while expenses are the income.

• Revenue is the profit, while expenses are the losses.

• Revenue is the income, while expenses are the costs.

• Revenue is the expenditure, while expenses are the savings.