Business Terms Quiz: Interesting Trivia!
Do you know any business terms? Knowing basic business terms will help you pass this quiz. The areas of interest include doubling the cost of goods, what commission is and how it is obtained, what it is called when you have a target audience, and what you would find on a resume. The profession of business drives this quiz. Get ready to test your knowledge of business terms.
Questions and Answers
- 1.
The exchange of goods or services for money is:
- A.
Sales
- B.
Profit
- C.
Gross Profit
- D.
Commission
Correct Answer
A. SalesExplanation
The term "sales" refers to the exchange of goods or services for money. It represents the revenue generated by a business through the selling of its products or services. Sales are a crucial aspect of any business as they directly contribute to its financial success. Profit, gross profit, and commission are related concepts but not direct synonyms for the exchange of goods or services for money.Rate this question:
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- 2.
The price it costs a business to purchase one product is called:
- A.
Sales
- B.
Profit
- C.
Cost of Goods Sold
- D.
Commission
Correct Answer
C. Cost of Goods SoldExplanation
The correct answer is Cost of Goods Sold. This term refers to the expenses incurred by a business to purchase the products that it sells. It includes the cost of materials, labor, and overhead expenses directly associated with producing the goods. Cost of Goods Sold is an important metric used in calculating a company's gross profit and determining the profitability of its operations.Rate this question:
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- 3.
Doubling the cost of goods sold to help determine the selling price is called:
- A.
Sales
- B.
Cost of Goods Sold
- C.
Gross Profit
- D.
Keystoning
Correct Answer
D. KeystoningExplanation
Keystoning refers to the practice of doubling the cost of goods sold in order to determine the selling price. This strategy is commonly used in retail businesses to ensure a desired profit margin. By doubling the cost of goods sold, the business aims to cover not only the cost of the product but also overhead expenses and generate a profit. Keystoning simplifies pricing decisions and allows businesses to easily calculate the selling price based on the cost of the product.Rate this question:
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- 4.
What is it called when payment is made based on a percentage of sales?
- A.
Commission
- B.
Sales
- C.
Target Market
- D.
Profit
Correct Answer
A. CommissionExplanation
When payment is made based on a percentage of sales, it is called commission. This means that the amount of money earned is directly proportional to the number of sales made. The more sales that are made, the higher the commission earned. This type of payment structure is commonly used in sales roles to incentivize and reward individuals for their performance and ability to generate sales.Rate this question:
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- 5.
The amount a business makes before expenses is called:
- A.
Sales
- B.
Profit
- C.
Gross Profit
- D.
Cost of Goods Sold
Correct Answer
C. Gross ProfitExplanation
Gross profit refers to the amount of money a business earns before deducting any expenses. It is calculated by subtracting the cost of goods sold from the total sales revenue. This figure represents the profitability of the business and provides insight into its ability to generate revenue from its core operations. Unlike profit, which takes into account all expenses, gross profit focuses solely on the revenue generated from the sale of goods or services.Rate this question:
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- 6.
The amount a business makes after expenses is called:
- A.
Sales
- B.
Gross Profit
- C.
Profit
- D.
Cost of Goods Sold
Correct Answer
C. ProfitExplanation
Profit is the correct answer because it refers to the amount a business makes after deducting all expenses from its total revenue. It represents the financial gain or benefit that a business achieves from its operations. Sales refers to the total revenue generated from the sale of goods or services, while Gross Profit represents the revenue remaining after deducting the cost of goods sold. Cost of Goods Sold refers to the direct costs associated with producing or purchasing the goods that are sold.Rate this question:
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- 7.
What is the group of customers called that a business has decided to aim its promotions at?
- A.
Marketing
- B.
Target Market
- C.
Sales
- D.
Employees
Correct Answer
B. Target MarketExplanation
The group of customers that a business has decided to aim its promotions at is called the target market. This refers to a specific segment of the market that the business believes will be most interested in their products or services. By identifying and targeting this group, businesses can tailor their marketing strategies and messages to effectively reach and engage their desired customers.Rate this question:
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- 8.
Cost of Goods Sold helps in determining the selling price of a product.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Cost of Goods Sold (COGS) is an important financial metric that represents the direct costs incurred in producing or manufacturing a product. These costs include the cost of raw materials, labor, and any other direct expenses associated with the production process. By calculating the COGS, businesses can determine the total cost of producing a product, which is then used to determine the appropriate selling price. This ensures that the selling price covers the costs incurred and allows the business to generate a profit. Therefore, the statement that COGS helps in determining the selling price of a product is true.Rate this question:
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- 9.
When a person gets paid commission, the more they sell the less money they will receive in their paycheck.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
This statement is false. When a person gets paid commission, the more they sell, the more money they will receive in their paycheck. Commission is typically a percentage of the sales made, so the more sales a person makes, the higher their commission will be.Rate this question:
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- 10.
The amount of sales is needed to calculate commission.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because in order to calculate commission, the amount of sales is required. Commission is typically calculated as a percentage of the sales made, so without knowing the amount of sales, it would be impossible to determine the commission.Rate this question:
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- 11.
To calculate sales you must know the cost of goods sold.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
To calculate sales, you do not necessarily need to know the cost of goods sold. Sales can be calculated by multiplying the quantity of goods or services sold by their respective prices. The cost of goods sold is used to calculate gross profit, but it is not a requirement for calculating sales. Therefore, the given answer "False" is correct.Rate this question:
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- 12.
To calculate Profit you must know how much you had in Sales.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In order to calculate profit, it is necessary to have information about the amount of sales. Profit is determined by subtracting the cost of goods sold from the total sales revenue. Without knowing the sales figure, it would be impossible to accurately calculate the profit. Therefore, the statement "To calculate Profit you must know how much you had in Sales" is true.Rate this question:
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- 13.
Check all of the sections that would be found on a resume?
- A.
Personal Information (Name, Address, Phone Number, email address)
- B.
References
- C.
Previous Boyfriends/Girlfriends
- D.
Education
- E.
Picture of yourself
- F.
Work Experience
Correct Answer(s)
A. Personal Information (Name, Address, Phone Number, email address)
B. ReferencesExplanation
The sections that would be found on a resume are Personal Information (Name, Address, Phone Number, email address) and References. Personal Information is important for employers to contact the applicant and References provide information about the applicant's character and work ethic. The other sections listed, such as Previous Boyfriends/Girlfriends and Picture of yourself, are not relevant or appropriate for a resume. Education and Work Experience are commonly included on a resume to showcase the applicant's qualifications and relevant experience.Rate this question:
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- 14.
The purpose of a cover letter is
- A.
Inform the position you are applying for
- B.
Provide qualities and characteristics you have
- C.
Inform them why you would be good for the job
- D.
Provide them with references of people they can call
- E.
Inform them why they would want to hire you more than anyone else
Correct Answer(s)
A. Inform the position you are applying for
B. Provide qualities and characteristics you have
C. Inform them why you would be good for the jobExplanation
A cover letter serves the purpose of informing the position you are applying for, providing qualities and characteristics you have, and informing the employer why you would be good for the job. It allows you to showcase your skills and experiences relevant to the position and demonstrate your fit for the role. By highlighting your qualifications and explaining why you are the ideal candidate, you increase your chances of getting noticed by the employer and securing an interview. Additionally, mentioning references of people they can contact adds credibility to your application.Rate this question:
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- 15.
To prepare for an interview, you should
- A.
Prepare questions to ask at the interview
- B.
Practice answering questions
- C.
Nothing at all if you have done many interviews
- D.
Research the company
Correct Answer(s)
A. Prepare questions to ask at the interview
B. Practice answering questionsExplanation
Preparing questions to ask at the interview and practicing answering questions are important steps to take in order to prepare for an interview. By preparing questions to ask, you show your interest in the company and the position, and it also helps you gather more information about the role and the company culture. Additionally, practicing answering questions helps you become more confident and articulate in expressing your skills and experiences, which can greatly improve your performance during the interview.Rate this question:
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- 16.
At the interview you should
- A.
Dress for Success
- B.
Wear lots of jewelry
- C.
Introduce yourself and Give a firm handshake to demonstrate confidence
- D.
Thank the interviewer for the interview
- E.
Answer questions without thinking about the answer
- F.
Ask questions about the position you are applying for
- G.
Look at the table during the interview
Correct Answer(s)
A. Dress for Success
C. Introduce yourself and Give a firm handshake to demonstrate confidenceExplanation
The correct answer is Dress for Success, Introduce yourself and Give a firm handshake to demonstrate confidence. These actions are important during an interview as they create a positive first impression. Dressing professionally shows respect for the company and demonstrates that you take the interview seriously. Introducing yourself and giving a firm handshake conveys confidence and professionalism. These actions can help establish a positive rapport with the interviewer and increase your chances of success in the interview process.Rate this question:
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- 17.
If our profits are negative, it means
- A.
Expenses are more than Sales
- B.
Sales are more than Expenses
- C.
Selling Prices are too high
- D.
Profits don't matter in business
Correct Answer
A. Expenses are more than SalesExplanation
If our profits are negative, it means that the expenses incurred by the business are greater than the sales revenue generated. This indicates that the company is spending more money on various costs, such as production, salaries, and overhead, than it is making from selling its products or services. This can be a cause for concern as it implies that the business is operating at a loss and may need to reevaluate its expenses or pricing strategies in order to become profitable.Rate this question:
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- 18.
Commission is a(n)
- A.
Income (Money coming into the company)
- B.
Expense (Money going out of the company)
Correct Answer
B. Expense (Money going out of the company)Explanation
Commission is considered an expense because it is a form of compensation paid to employees or salespeople for their services or for achieving certain sales targets. It represents money that is going out of the company's accounts as a cost of doing business. The company incurs this expense to incentivize and reward employees for their efforts in generating sales or securing business deals. Therefore, commission is categorized as an expense rather than income, as it represents an outflow of funds from the company.Rate this question:
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- 19.
Sales would be categorized as
- A.
Income (Money coming into the company)
- B.
Expense (Money going out of the company)
Correct Answer
A. Income (Money coming into the company)Explanation
Sales would be categorized as income because it represents the money coming into the company. Sales refer to the revenue generated from selling products or services, which increases the company's overall income. In accounting terms, income is the amount of money earned by a company during a specific period, and sales contribute directly to this income. Therefore, categorizing sales as income is appropriate as it reflects the inflow of funds into the company.Rate this question:
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