Business Essentials vocabulary
Questions with Correct Answers
Entrepreneur - ANSWERSSomeone who starts and runs a business
Sole Proprietorship - ANSWERSthe business is completely owned by one person
Start-up costs - ANSWERSare the expenses involved in going into business
Goodwill - ANSWERSloyalty of existing costumers, is one of a business's most valuable
assets
Revenue - ANSWERSThe first item in a income statement
Partnership - ANSWERSis a legal arrangement in which two or more people share
ownership
Corporation - ANSWERSA business, charted by a state, that legally operates apart from
the owners
Operating Expenses - ANSWERSThe cost of doing business, such as the cost of
manufacturing and selling the product
Market Outlook - ANSWERSpotential for future sales, may have changed
Income Statement - ANSWERSA summary of your business's income and expenses
during a specific period, such as a month, a quarter, or a year
Franchise - ANSWERSis the legal right to sell a company's goods ans services in a
particular area
Net Profit - ANSWERSThe amount left after operating expenses are subtracted from the
gross profit
Lease - ANSWERSis a contract to use something for a specified period of time
Gross Profit - ANSWERSThe difference between the cost of goods and their selling
price
Business Plan - ANSWERSspecific information about a business's product(s),
location,employee's, organization, marketing plan, and competitors
Questions with Correct Answers
Entrepreneur - ANSWERSSomeone who starts and runs a business
Sole Proprietorship - ANSWERSthe business is completely owned by one person
Start-up costs - ANSWERSare the expenses involved in going into business
Goodwill - ANSWERSloyalty of existing costumers, is one of a business's most valuable
assets
Revenue - ANSWERSThe first item in a income statement
Partnership - ANSWERSis a legal arrangement in which two or more people share
ownership
Corporation - ANSWERSA business, charted by a state, that legally operates apart from
the owners
Operating Expenses - ANSWERSThe cost of doing business, such as the cost of
manufacturing and selling the product
Market Outlook - ANSWERSpotential for future sales, may have changed
Income Statement - ANSWERSA summary of your business's income and expenses
during a specific period, such as a month, a quarter, or a year
Franchise - ANSWERSis the legal right to sell a company's goods ans services in a
particular area
Net Profit - ANSWERSThe amount left after operating expenses are subtracted from the
gross profit
Lease - ANSWERSis a contract to use something for a specified period of time
Gross Profit - ANSWERSThe difference between the cost of goods and their selling
price
Business Plan - ANSWERSspecific information about a business's product(s),
location,employee's, organization, marketing plan, and competitors
