Net Income
It is the end of December, and Juan, the owner of a small sporting goods business, is paying the last few expenses for the year. Once all the expenses are paid, the money that is left over will be Juan's profit and is also referred to as:
A) net income
B) variable income
C) retention income
D) division income
A) net income
In a capitalist society like the United States, the government takes on functions like what and private businesses pick up everything left over?
A) entertainment and agriculture
B) the military and infrastructure
C) healthcare and customer safety
D) labor and consumerism
B) the military and infrastructure
_____ is all of the money that a business takes in.
A) Salary
B) Productivity
C) Budget
D) Revenue
D) Revenue
Please list and explain 3 things a business can do to keep their labor costs in-line or lower their labor costs.
1. Specialization of Labor - Hire employees that have the skills you need - these employees are able to do their job more efficiently and accurately which saves your company money because they can do more in less time, therefore they are more efficient. Every labor dollar spent goes farther.
2. Division of Labor - Have certiain employees do certain jobs so that they get very good at their job/task and do it more efficiently. This allows your business to get more done in a shorter amount of time.
3. Put employees in jobs that they are best at. This creates more efficiency and lower labor costs.
4. Keep your employees - increase retention - You can do this many ways, but one option is to offer the benefits that employees want so that you can keep employees happy. A second option is to create a great company culture so that employees are happy & proud to work where they do & want to stay. Third, make sure to have competitive wages.
Some things, such as the cost of heating or cooling following a sudden change in the weather, can change from month to month for businesses and are referred to as what kind of expense?
A) base expense
B) fixed expense
C) variable expense
D) static expense
C) variable expense
Inventory control is important for all businesses, but it is particularly important if the business has products like food or flowers, otherwise known as what kind of products?
A) perishable
B) non-perishable
C) expendable
D) organic
A) perishable
Why are most of the factors that drive up supply costs external factors?
A) because all businesses outsource all of their supplies
B) because the supplies that most businesses rely on do not depend on the weather
C) because businesses often control the cost of many of the supplies they need
D) because businesses often do not control the production and expense of many of the supplies they need
D) because businesses often do not control the production and expense of many of the supplies they need
When a business's expenses change based on external factors, this means that these factors are _____ the business's control.
A) intrinsic
B) outside
C) within
D) inside
B) outside
For a business, _____ sales mean greater revenue.
A) lower
B) higher
C) mediocre
D) minimum
B. higher
What term refers to the ratio of how many hours of labor it takes to produce a product—essentially the measure of a company's efficiency?
A) productivity
B) revenue
C) retention
D) variables
A) productivity
Sloan owns a small corner market that sells everything from canned goods to small toiletries, milk, cheese, and several other dairy products. If Sloan doesn't sell the perishable items like dairy products by their expiration date, these items must be thrown out and are considered what kind of expense?
A) reticent
B) minimum
C) unrecoverable
D) recoverable
C. unrecoverable
When it comes to running a business, someone has to actually do the work, and that work is called what?
A) skill
B) labor
C) effort
D) management
B) labor
If a company employs 50 or more full-time employees, the business is required to provide _____ to their employees
A) paid vacations
B) health insurance
C) free lunch
D) tuition reimbursement
B) health insurance
While employers can decide which benefits they would like to offer, they have no choice when it comes to paying what at the state and federal level?
A) taxes
B) tuition reimbursement
C) retirement
D) bonuses
A. taxes
You own a small gift boutique that does very well and often sells out of many items. However, you have noticed that some decorative stationary you recently stocked is not selling. What can you do to help encourage customers to buy this slow-moving product?
A) be pushy with customers to buy it
B) eliminate all other similar products
C) put it on sale or discount it
D) give it away for free
C) put it on sale or discount it
What brand manufactures their product in Costa Rica and is the only authorized brand to produce balls for Major League baseball?
A) Craftsman
B) Stetson
C) Rawlings
D) Beats
C) Rawlings