In order to stay in business, a business must be able to ________.
  • have deep discounts
  • make a profit
  • get a bank loan
  • sell products cheaply
A profit is a _________.
  • gain on investment
  • sale on a unit piece
  • overhead expense
  • the store owner's salary
The gross profit is ________.
  • calculated by subtracting the costs of operating the business
  • the total amount of all sales of goods
  • the amount left over after deducting for overhead costs
  • the total amount of a sale of a product minus the initial cost of the product
The price of each piece of goods is known as the ________.
  • gross cost
  • total cost
  • unit cost
  • sale's cost
Rent, electricity, heat, water and sewer, telephone, advertising, supplies (hangers, tags, etc.), insurance, a security system and salaries are all _________.
  • operating costs
  • business taxes
  • parts of the gross profit
  • included in the profit
The net profit is _____________.
  • the cost of goods minus the costs of operating the business
  • the gross profit minus the costs of operating the business
  • the inventory of goods minus the costs of operating the business
  • the sum left to pay overhead expenses
The difference between the gross profit and the operating expenses when the operating expenses are greater than the gross profit is known as _______.
  • a net profit
  • a gross loss
  • a net loss
  • a unit cost
Another important part of having a successful business is to always maintain a positive flow of ________.
  • cash flow
  • employees
  • goods
  • inventory
If customers will not buy a product at a certain cost, the store owner is forced to _______.
  • operate at a net loss
  • return the product to the vendor
  • destroy the product
  • lower the price
Understanding profit and loss can help you to _________.
  • graduate from college
  • find a job
  • run a household
  • buy a business
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