National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

After a company hired a telemarketing firm that increased revenue by $295,300, how successful was this business venture based on the investment?

1. A loss of approximately $140,000

2. A net gain of over $137,000

3. Break-even with no profits

4. A loss of over $70,000

The correct answer is: A net gain of over $137,000

To determine the success of the business venture pertaining to the investments made in hiring the telemarketing firm, one needs to consider not just the revenue generated, which is $295,300, but also the costs associated with hiring the telemarketing firm. The provided answer indicates that there was a net gain of over $137,000. This calculation implies that the revenue generated from the telemarketing efforts exceeded the total costs incurred by more than $137,000. If the investment was effectively less than $158,300, that would lead to a net gain exceeding $137,000. Thus, this option reflects a successful financial outcome, as the revenue generated surpasses the expenditure significantly, demonstrating that the initiative was both profitable and beneficial for the company. Evaluating the other choices indicates that they imply either a loss or break-even scenario, which would not accurately represent a situation where revenue appreciably exceeded investment costs. Hence, the conclusion of a net gain indicates a successful return on investment, marking the telemarketing effort as an advantageous decision for the company.