Business Expenses and Break-Even Analysis
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Questions and Answers

What is the formula for profit as mentioned in the text?

  • Profit = Revenue * Expenses
  • Profit = Revenue / Expenses
  • Profit = Revenue + Expenses
  • Profit = Revenue - Expenses (correct)

    • When does a break-even point occur?

  • When there is a profit but no loss
  • When there is a loss but no profit
  • When there is always a profit
  • When there is neither profit nor loss (correct)

    • In the context of Kuya Keeno's business, what does 'Net Sales' refer to?

  • Total sales after deducting all costs
  • Sales after all expenses have been deducted (correct)
  • Sales after deducting cost of goods sold
  • Total sales before deducting operating expenses

    • What does 'Cost of Goods Sold' represent in Kuya Keeno's business transactions?

    <p>Expenses related to the production of goods sold</p> Signup and view all the answers

    Based on Kuya Keeno's transactions, what was his net profit on Day 3?

    <p>$0.00</p> Signup and view all the answers

    How much was Kuya Keeno's total gross sales for Day 5 based on the information provided?

    <p>$1,600.00</p> Signup and view all the answers

    What does the Return on Investment (ROI) of Keeno's business venture indicate?

    <p>He earned 48% return on the cost of his investment</p> Signup and view all the answers

    Which of the following statements is true regarding Keeno's business profitability?

    <p>The Return on Sales (ROS) was 48%</p> Signup and view all the answers

    What characteristic of a successful entrepreneur is highlighted in the text?

    <p>Wisely investing money and earning savings</p> Signup and view all the answers

    How long did it take for Keeno to earn back his initial capital investment according to the text?

    <p>$640</p> Signup and view all the answers

    In the context of the text, what does the net income represent?

    <p>The amount earned after deducting all expenses from revenue</p> Signup and view all the answers

    Why is it important for a business venture to have a high Return on Investment (ROI)?

    <p>To earn back the cost of investment quickly</p> Signup and view all the answers

    How is profitability typically assessed in a business?

    <p>By analyzing revenue and expenses</p> Signup and view all the answers

    In the context of business viability, what factors are typically considered?

    <p>Market competition and regulatory environment</p> Signup and view all the answers

    What role do customer requirements play in determining business success?

    <p>They help in improving product quality and service delivery</p> Signup and view all the answers

    When computing for profit, which of the following equations is commonly used?

    <p>$ ext{Profit} = ext{Revenue} - ext{Expenses}$</p> Signup and view all the answers

    Which of the following statements best describes the importance of profitability in a business?

    <p>Profitability helps ensure the financial health and sustainability of a business.</p> Signup and view all the answers

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