The Process of Initiating a Business Venture,organizing the Necessary Resources,and

question 25

Multiple Choice

The process of initiating a business venture,organizing the necessary resources,and assuming the risks and rewards is referred to as:

• A)leadership
• B)entrepreneurship
• C)business planning
• D)strategic planning

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Definitions:

Activity Variance

The difference between the planned activity level and the actual activity level, often analyzed in budgeting and variance analysis.

Expenses

The outflows or the use of assets in the generation of revenue, including costs of goods sold, operating expenses, and non-operating expenses.

Unfavorable Activity Variance

A discrepancy where the actual cost exceeds the budgeted or planned cost in managerial accounting, often analyzed in the context of activity-based costing.

Flexible Budget Performance Report

A report that compares the actual performance and expenditures of a business against a budget that adjusts with the level of activity, helping to provide a more accurate basis for comparison and analysis.