Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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The term 'net profit' refers to:

  1. Total revenue minus total expenses

  2. Total revenue before taxes

  3. Total profit from sales

  4. Revenue without deductions

The correct answer is: Total revenue minus total expenses

The term 'net profit' specifically refers to the amount remaining after all expenses have been deducted from total revenue. This includes operating expenses, interest, taxes, and any other costs incurred in the process of running the business. By calculating total revenue and subtracting total expenses, businesses can determine their net profit, which is a key indicator of financial performance and profitability. It represents the true earning potential of the business and is essential for assessing overall financial health and making informed business decisions.

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