All of the Following Are Hurdles Small Businesses Face When

question 121

Multiple Choice

All of the following are hurdles small businesses face when considering exporting except:

• A)financing is often difficult to find.
• B)overseas buyers prefer dealing with large corporate bureaucracies.
• C)there is great deal of required paperwork.
• D)cultural differences are not easily understood.

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Definitions:

Break-even Point

The point at which total cost and total revenue are equal, meaning no net loss or gain, and the business is not making a profit but not losing money either.

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Income Statement

A financial document that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period, showing how the revenue is transformed into net income.

Variable Expenses

Expenses that vary directly with the amount of production or activity level.