Revenue Streams Quiz

What is a revenue stream?

• A business’s inventory system

• A source of income a business earns from goods or services

• A payment plan for employees

Which of the following is considered operating revenue?

• Dividend income

• Sale of goods

• Loan proceeds

Why is diversification of revenue streams important?

• It simplifies accounting

• It reduces financial risk

• It increases hiring

Transaction-based revenue refers to:

• Weekly salary payments

• One-time sales of products or services

• Donations

What is a benefit of recurring revenue?

• Increased taxes

• Unpredictable income

• Predictable cash flow

Which of the following is a non-operating revenue?

• Subscription payments

• Interest income

• Service fees

Project-based revenue is earned when:

• A subscription renews

• A service is rendered monthly

• A project is completed

Choosing revenue streams requires:

• Cutting expenses

• Understanding customer needs

• Ignoring competitors

Revenue streams stabilize a business by:

• Raising employee pay

• Limiting cash reserves

• Diversifying income

Which is most likely a recurring revenue stream?

• Freelance photography

• Monthly software subscription

• Selling concert tickets