Question

1. how do you define \profit\?

a. when revenue exceeds costs
b. when costs exceed revenue
c. when revenue achieves planned target
d. when the bottom line is in the red

1. how do you define \loss\?

a. when costs fall lower than projection
b. when the bottom line is in the black
c. when revenue exceeds costs
d. when costs exceed revenue

1. how do you define \value\?

a. when the perception of competition is too expensive
b. the perceived benefits by a customer of price to the time and money spent
c. when market research establishes the floor price
d. when a customer purchases for the lowest price in town

1. which functional area of a business is responsible for converting production into goods and services?

a. management
b. operations
c. marketing / sales
d. finance

1. sea - worthy is an ocean shipping company. the company decided internal erp (enterprise resource management) system since no commercial packages met the specific needs of their unique business. halfway into development by their it department, the company realized that this system could be licensed to their competitors to offset the costs and fund future enhancements. which functional area of the company is responsible for creating revenue from this internal system?

a marketing
b operations
c finance
d. r&d

Explanation:

1. Profit occurs when revenue is higher than costs.
2. Loss is when costs are greater than revenue.
3. Value is the perceived benefits by a customer relative to the time and money spent.
4. The operations area converts production into goods and services.
5. Marketing is responsible for creating revenue by licensing the internal system to competitors.

Answer:

1. A. when revenue exceeds costs
2. D. when costs exceed revenue
3. B. the perceived benefits by a customer of price to the time and money spent
4. B. Operations
5. A. Marketing