DECA Sports and Entertainment Marketing Practice Exam

Which of the following terms describes an activity that will produce money?

1. Investment Opportunity

2. Expense Report

3. Revenue Stream

4. Capital Asset

The correct answer is: Revenue Stream

The term that best describes an activity that will produce money is "Revenue Stream." A revenue stream refers to the various sources or avenues through which a business generates income. It encompasses activities or transactions that result in cash inflow, such as sales, subscriptions, licensing fees, or advertising revenues. By focusing on revenue streams, businesses can identify and develop profitable activities that contribute to their overall financial health. The other terms listed have different meanings. For example, an investment opportunity typically refers to a chance for investors to put their money into a venture with the expectation of generating returns, but it does not inherently describe a consistent source of income. An expense report is a document that outlines expenditures incurred by employees or the business, which are not related to revenue generation. Lastly, a capital asset is a long-term asset that a company owns, such as property or equipment, which may appreciate in value or be used to generate income, but on its own does not directly produce money like revenue streams do. Thus, "Revenue Stream" is the term that accurately represents money-generating activities.