Question

profit ________.
a. is earned when the money a business takes in is more than what it spends
b. is the amount of money a business takes in from the customer in exchange for goods and/or services
c. is the only goal a business pursues
d. is the amount of money a business earns before expenses are accounted for
e. is earned when the money a business takes in is less than what it spends

Explanation:

• Option A: Profit is calculated as revenue (money taken in) minus expenses (money spent). If revenue > expenses, profit is earned. This matches the definition.
• Option B: This defines revenue, not profit.
• Option C: Businesses have multiple goals (e.g., customer satisfaction, growth), so profit isn't the only goal.
• Option D: The amount before expenses is revenue, not profit (profit accounts for expenses).
• Option E: When revenue < expenses, it's a loss, not profit.

Answer:

A. is earned when the money a business takes in is more than what it spends