Risk Rewarded LAP Test

1. In business terms, what is profit?

• 1. A good investment

• 1. A holiday bonus

• 1. A monetary reward

• 1. A risky venture

1. If expenses are greater than income, there’s no

• 1. risk.

• 1. reward.

• 1. sales.

• 1. guarantee.

1. In business terms, income is the money

• 1. produced.

• 1. supplied.

• 1. received.

• 1. spent.

1. The amount of money paid for raw materials and products sold is called

• 1. net profit.

• 1. gross profit.

• 1. operating expense.

• 1. cost of goods.

1. The money spent to run a business is called

• 1. gross profit.

• 1. net profit.

• 1. cost of goods.

• 1. operating expense.

1. Gross profit shows business owners the difference between what they’ve

• 1. estimated and invoiced.

• 1. received and billed.

• 1. spent and received.

• 1. paid and risked.

1. Business owners are usually interested in net profit because they want to know what they can

• 1. produce.

• 1. supply.

• 1. keep.

• 1. risk.

1. Besides motivation, what does profit provide business owners in particular?

• 1. Determination

• 1. Satisfaction

• 1. Energy

• 1. Influence

1. Which of the following is a general benefit profit provides:

• 1. More products

• 1. Better wages

• 1. Higher prices

• 1. Better supplies

1. Each purchase strengthens the economy by encouraging

   .

• 1. expansion.

• 1. investment.

• 1. trade.

• 1. competition.