Chapter 2

Question 1

Profit

Answer 1

The Amount Of Money Remaining From Revenues After All Expenses Are Paid.

Question 2

Revenue

Answer 2

Income, especially when of a company or organization and of a substantial nature.

Question 3

Profit Motive

Answer 3

The desire for financial gain as an incentive in economic activity.

Question 4

Macroeconomics

Answer 4

The part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.

Question 5

Microeconomics

Answer 5

The part of economics concerned with single factors and the effects of individual decisions.

Question 6

Economic Utility

Answer 6

The amount of satisfaction a person receives from the consumption of a particular product or service.

Question 7

Form Utility

Answer 7

Physical characteristics of a product.

Question 8

Time Utility

Answer 8

Making the product or service available when the consumer wants it.

Question 9

Place Utility

Answer 9

Making sure the product or service is available where the consumer wants it.

Question 10

Possession Utility

Answer 10

Making the product or service available at an affordable price.

Question 11

Risk

Answer 11

The possibility of financial gain or loss or personal injury.

Question 12

Natural Risk

Answer 12

Weather conditions that cannot be avoided.

Question 13

Human Risks

Answer 13

Risks occurred as a result of employee or consumer actions.

Question 14

Economic Risk

Answer 14

A result of changes in the business environment due to changes in the environment.

Question 15

Speculative Risk

Answer 15

Taking risk on an unknown outcome.

Question 16

Pure Risk

Answer 16

Chance of an event occurring that could result only in a loss.

Question 17

Controllable Risk

Answer 17

If a loss can be prevented or the likelihood of its occurrence is reduced.

Question 18

Uncontrollable Risk

Answer 18

A risk that cannot be controlled or prevented.

Question 19

Insurable Risk

Answer 19

Pure risk for which the chances of loss are predictable and the amount of loss can be estimated.

Question 20

Risk Management

Answer 20

Involves preventing, reducing or lessening the negative impacts of risk.

Question 21

Character Development

Answer 21

Stages in which people advance from childish behavior to mature and responsible behavior based on principles.

Question 22

Liable

Answer 22

Business is legally responsible for damages and may have to pay costs.

Question 23

Expenses

Answer 23

The costs of producing and selling the goods or services.

Question 24

Economics

Answer 24

The study of how goods and services are produced, distributed and consumed.

Question 25

Premium

Answer 25

Cost of insurance is paid in this form.

Question 26

Ethics

Answer 26

A system of deciding what is right and wrong in a reasonable and impartial manner.

Question 27

Principles

Answer 27

High standards of rules and guidelines in which ethical behavior is based.

Question 28

Return on Investment (ROI)

Answer 28

The income on a venture that is distributed to investors.

Question 29

Forecast

Answer 29

A report used to predict the expenses to be incurred and the revenues to be received from an event.

Question 30

Budget

Answer 30

A plan for how available funds will be spent.

Question 31

Balance Sheets

Answer 31

Financial statement that shows a company’s assets, liabilities and net worth.