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Questions and Answers
Which statement accurately describes the relationship between expenses, revenue, and business profit?
Which statement accurately describes the relationship between expenses, revenue, and business profit?
- Business profit is derived by subtracting expenses from revenue. (correct)
- Business profit is calculated by adding expenses to revenue.
- Business profit is determined by dividing revenue by expenses.
- Business profit is equivalent to the sum of expenses and costs.
What is the primary differentiating factor between a fixed cost and a variable cost?
What is the primary differentiating factor between a fixed cost and a variable cost?
- Fixed costs fluctuate with production volume, while variable costs remain constant.
- Fixed costs remain constant regardless of production, while variable costs change with production volume. (correct)
- Fixed costs are easier to predict than variable costs.
- Fixed costs are one-time expenses, while variable costs are recurring costs.
A company's total revenue is calculated by multiplying:
A company's total revenue is calculated by multiplying:
- Fixed costs by Variable costs.
- Quantity sold by Number of transactions.
- Quantity sold by Price. (correct)
- Quantity sold by Total cost.
Consider a scenario where a business's costs are equivalent to its income. Which term accurately describes this state?
Consider a scenario where a business's costs are equivalent to its income. Which term accurately describes this state?
If a company sells more units than calculated at the break-even point, what is the expected outcome?
If a company sells more units than calculated at the break-even point, what is the expected outcome?
Which of the following is the correct definition of Corporate Social Responsibility (CSR)?
Which of the following is the correct definition of Corporate Social Responsibility (CSR)?
What is one of the disadvantages of Corporate Social Responsibility (CSR)?
What is one of the disadvantages of Corporate Social Responsibility (CSR)?
Which of the following organizational structures is responsible for coordinating the production of goods and services?
Which of the following organizational structures is responsible for coordinating the production of goods and services?
Which of the following is NOT a goal of companies?
Which of the following is NOT a goal of companies?
Which sector would you classify a scientific research company under?
Which sector would you classify a scientific research company under?
Flashcards
What is a Company?
What is a Company?
An entity that coordinates the production of goods and services.
What is business profit?
What is business profit?
All revenues minus all expenses, indicating overall profitability.
What is a fixed cost?
What is a fixed cost?
Recurring expenditure, like mortgage payments, with a fixed amount.
How to calculate Total Revenue
How to calculate Total Revenue
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What is the break-even point?
What is the break-even point?
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When does a business make a profit?
When does a business make a profit?
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What is Corporate Social Responsibility (CSR)?
What is Corporate Social Responsibility (CSR)?
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What are economic sectors?
What are economic sectors?
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What is the Quaternary Sector?
What is the Quaternary Sector?
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What is a common problem for all economic sectors?
What is a common problem for all economic sectors?
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Study Notes
- A company is a specialized entity that coordinates the production of specific goods and services.
- Maximizing income is an objective of companies.
- Creating employment and wealth in the area of influence is an objective of companies.
- Stabilizing and growing is an objective of companies.
- Improving the well-being of society is an objective of companies.
- The business profit is calculated as income minus expenses.
- Mortgage payment is a fixed cost.
- Total income = Quantity sold (Qv) * Sale price (Pv).
- Cost is different from payment.
- Income is different from collection.
- The break-even point is also called profitability threshold.
- If you sell more units than those calculated at the break-even point, you will have benefits.
- CSR stands for Corporate Social Responsibility.
- Politicians is NOT an area that affects CSR.
- Integration into CSR is not mandatory by law.
- Less competitiveness is not an advantage of CSR.
- Economic sectors refer to the division of economic activity of a territory according to the different types of production processes.
- A scientific research company would be framed in the quaternary sector.
- Energy bill is a common problem for all economic sectors.
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