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- 1. Multiple ChoiceWhen is a business making a profit?When revenues are higher than costsWhen revenues equal costsWhen revenues are less than costs
- 2. Multiple ChoiceWhat is the definition of Revenue?Income from the sales of goods and servicesIncome from the cost of goods and servicesThe money made on productsCash coming into the business from suppliers and customers
- 3. Multiple Choice
How do you calculate Gross Profit Margin?
gross profit / sales (revenue) x 100
gross profit x sales (revenue) / 100
gross profit / sales (revenue) / 100
gross profit x sales (revenue) x 100
- 4. Multiple Choice
How do you calculate Net Profit Margin?
net profit / sales (revenue) x 100
net profit x sales (revenue) / 100
net profit / sales (revenue) / 100
net profit x sales (revenue) x 100
- 5. Multiple Choice
Suppose one year Company A’s REVENUE is 50k and its total EXPENDITURES are 25k making its profit margin ____?
0%
25%
50%
75%
100%
- 6. Multiple Choice
How do you calculate revenue?
sales x price
price x cost
cost + sales
sales - total price
- 7. Multiple Choice
What do profitability ratios show?
What happens to each pound spent by the company
What happens to each pound invested by a shareholder
What happens to each pound spent by a customer
What happens to each pound spent by a competitor
- 8. Multiple Choice
Gross Profit Margin should be greater than Net Profit Margin?
True
False
- 9. Multiple Choice
Gross profit includes which costs
Direct Costs
Indirect Costs
Revenues
Average Rate of Return
- 10. Multiple Choice
Net profit includes:
Direct Costs
Indirect Costs
Revenue
Average Rate of Return
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