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 (C)</p> Signup and view all the answers

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

<p>$0.00 (C)</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 (D)</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 (B)</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% (C)</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 (A)</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 (A)</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 (C)</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 (D)</p> Signup and view all the answers

How is profitability typically assessed in a business?

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

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

<p>Market competition and regulatory environment (C)</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 (C)</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}$ (D)</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. (A)</p> Signup and view all the answers

Flashcards

Profit

The financial gain a business earns after deducting all expenses from its revenue.

Break-even Point

The point where a business's total revenue equals its total expenses, resulting in no profit or loss.

Net Sales

The total revenue generated by a business after subtracting all related expenses.

Cost of Goods Sold (COGS)

Expenses directly associated with the production of goods sold, like materials, labor, and manufacturing costs.

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Return on Sales (ROS)

A measure of how much profit a business generates for every dollar of revenue.

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Return on Investment (ROI)

The percentage return an investor earns on their investment. It measures the profitability of an investment.

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Profitability

The ability of a business to generate profits and sustain itself financially.

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Investment Return

A business's ability to recover its initial investment over time.

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Net Income

The amount of money earned after deducting all expenses from revenue, representing the business's overall profitability.

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High Return on Investment (ROI)

A significant indicator of a business's success, signifying the efficiency with which investments are utilized to generate returns.

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Profitability Assessment

The process of evaluating a business's financial performance by measuring its profitability.

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Business Viability

Factors like market competition and regulations that determine the feasibility and potential success of a business venture.

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Customer Requirements

The needs and desires of customers that drive the development and improvement of products and services.

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Profit Equation

A mathematical equation used to calculate profit, taking into account a business's revenue and expenses.

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Importance of Profitability

The ability to consistently generate profits, ensuring a business's financial well-being and sustainable growth.

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