Lesson 2

Question 1

Amount of money remaining from revenues after all expenses are paid

Answer 1

Profit

Question 2

Making decisions to use resources in ways that result in the greatest profit

Answer 2

Profit motive

Question 3

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

Answer 3

Economic Utility

Question 4

Is the study of how good and services are produced, distributed, and consumed

Answer 4

Economics

Question 5

Is the possibility of financial gain or loss or personal injury

Answer 5

Risk

Question 6

Involves preventing, reducing, or lessening the negative impacts of risk by using the strategies of risk avoidant, risk insurance, risk transfer and for risk retention

Answer 6

Risk Management

Question 7

Means business is legally responsible for damage might have to pay for the medical cuts and other losses suffered by an injured person

Answer 7

Liable

Question 8

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

Answer 8

Ethics

Question 9

Which are the high standards of rules and guidelines in both business and personal life

Answer 9

Principles

Question 10

Is the income from a venture that is distributed to investors

Answer 10

Return on investment

Question 11

Is developed to predict the expenses to be incurred and revenues to be received from an event

Answer 11

Forecast

Question 12

Is a plan for now available funds will be spent

Answer 12

Budget

Question 13

Shows the company assets and its liabilities at a specific point in time

Answer 13

Balance sheet

Question 14

Shows all revenues received and all expenses incurred over a specific period of time

Answer 14

Income statement