5
QuizMultiple Choice

Case Study: Starting a Business — Quiz

Question 5 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Choose three correct answers.

Answer
A
a stocking up on soccer cleats and uniforms
B
a rise in the number of soccer leagues
C
the opening of two sporting goods stores
D
the push for physical activities in schools
E
a decrease in the cost of raw materials

Explanation

Profit is affected by factors that change demand for Sabrina’s products, their sales opportunities, or production costs. More soccer leagues can increase demand for soccer balls and nets, and two new sporting goods stores provide additional places to sell them. A decrease in raw-material costs lowers production expenses and can raise profit. Stocking up on cleats and uniforms does not directly affect this company’s products, and a general push for physical activity in schools is less directly connected than the specific changes in leagues, stores, and costs.

AI-written and checked against the verified answer.

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