ICET Business and Commerce Fundamentals

Question 1

What does GDP stand for in economics?

Accepted Answer

Gross Domestic Product

Answer

General Domestic Performance

Answer

Gross Development Product

Answer

General Development Progress

Question 2

Which type of market structure has only one seller controlling the entire market?

Accepted Answer

Monopoly

Answer

Perfect competition

Answer

Oligopoly

Answer

Duopoly

Question 3

What is the break-even point in business?

Accepted Answer

When revenue equals total costs

Answer

When revenue exceeds total costs

Answer

When profits are maximized

Answer

When losses are minimized

Question 4

What is working capital?

Accepted Answer

Current assets minus current liabilities

Answer

Total assets minus total liabilities

Answer

Fixed assets minus depreciation

Answer

Revenue minus expenses

Question 5

Which financial statement shows a company's financial position at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Statement of equity

Question 6

What is the formula for Return on Investment (ROI)?

Accepted Answer

Net profit / Cost of investment × 100

Answer

Net profit / Revenue × 100

Answer

Revenue / Total assets × 100

Answer

Gross profit / Net sales × 100