Business Essentials Spring 2025 Final

Which of the following best defines the term "business"?

• Entities that offer products to customers and do not earn a profit

• Entities that offer only services to earn a profit

• Stores and office buildings

• Entities that offer products or services to earn a profit

Which of the following is an example of a business?

• Charities

• Soup kitchen

• Casey's Lemonade Stand

• Volunteers

Which formula best represents the concept of profit?

• Profit = Revenue = Expenses

• Profit = Revenue < Expenses

• Profit = Revenue – Expenses

• Profit = Assets – Liabilities

What is the definition of revenue?

• Money the business pays out

• The value of all assets

• Money the business brings in

• The difference between income and expenses

Profit is achieved when:

• Expenses are greater than revenue

• Revenue equals expenses

• Revenue is greater than expenses

• Net worth equals assets minus expenses

Which of the following statements is true?

• A product is only a service

• A product is only a good

• A product is just goods

• A product can be goods or services

Which of the following is a service?

Who is responsible for creating the products a business offers?

• Intermediaries

• Consumers

• Producers

• Distributors

Which of the following best defines a service?

• Physical item sold to a customer

• Activity performed for a customer

• Product placed on a shelf

• Item held in inventory

What is the primary role of intermediaries in business?

• Consuming goods and services

• Creating raw materials

• Selling goods and services

• Providing financial backing