Chapter 1a – A Look at Wants and Needs
| A | B |
|---|---|
| consumer | A person who selects, purchases, uses or disposes of goods or services. |
| competition | The contest between businesses to win customers. |
| goods | Material things that can be physically weighed or measured. |
| needs | Necessarry wants, such as food, shelter, and clothing. |
What is money left after a business pays?
Corporate profit is the money left over after a corporation pays all of its expenses. All of the money collected by a corporation during the reporting period from services rendered or sales of a product is considered top-line revenue. From revenue, a company will pay its expenses.
What must businesses provide to customers in order to satisfy their needs and wants?
Chapter 1 Wants and Needs Review
| A | B |
|---|---|
| What must business provide to consumers in order to satisfy their wants and needs? | goods and services |
| Goods can be physically weighed or measured, but services cannot. | True |
| __________ is the contest between businesses to win customers. | competition |
What is an example of a business expense?
Here are some common business expense examples that may be partially or fully tax deductible: Payroll (employees and freelance help) Bank fees and interest. Rent.
What businesses make the most profit?
The Most Profitable Business by Sector:
- Accounting = 18.4%
- Lessors of Real Estate = 17.9%
- Legal Services = 17.4%
- Management of Companies = 16%
- Activities Related to Real Estate = 14.9%
- Office of Dentists = 14.8%
- Offices of Real Estate Agents = 14.3%
- Non-Metalic Mineral and Mining = 13.2%
How do you categorize expenses?
The easier it is to categorize your transactions, the more likely you’ll consistently keep track of your finances. This involves first categorizing your expenses as essential expenses or non-essential expenses. Then, categorizing by groups of similar purchases.
