ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Expenses
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Cost of Goods
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Income
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Profit
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Detailed explanation-1: -A reward a businessman receives after bearing the risk of the business is known as profit.
Detailed explanation-2: -Profit is the money you have left after paying for business expenses. There are three main types of profit: gross profit, operating and net profit. Gross profit is biggest. It shows what money was left after paying for the goods and services sold.
Detailed explanation-3: -There are three main measures of profit. These are gross profit, operating profit and net profit.
Detailed explanation-4: -An entrepreneur is an individual who takes the risk to start their own business based on an idea they have or a product they have created while assuming most of the risks and reaping most of the rewards of the business.
Detailed explanation-5: -To create accurate financial statements and monitor your business’s financial health, you should understand the two types of profits: gross profit and net profit.