Which of the Following Is the Best Example of a Business

question 105

Multiple Choice

Which of the following is the best example of a business whose goal is to earn a profit?

• A) A community college
• B) The American Red Cross
• C) Boy Scouts of America
• D) Apple

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Definitions:

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Product Costs

The total costs directly tied to the creation of a product, including raw materials, labor, and overhead expenses.

Periodic Inventory System

An inventory accounting system that records the inventory levels and cost of goods sold (COGS) at the end of an accounting period, not tracking each sale or purchase individually.