Verlin Wants to Avoid a Common Mistake Often Made by New

question 47

Multiple Choice

Verlin wants to avoid a common mistake often made by new entrepreneurs. Which of the following would you advise him to do?

• A) Spend as little as possible.
• B) Carry no inventory.
• C) Be sure to have adequate financing.
• D) Do without anything that is not absolutely essential.

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Definitions:

Marginal Analysis

An examination of the added benefits of an activity compared to the added costs incurred by that same activity.

Cell Phones

Portable electronic devices that allow users to make voice calls, send text messages, and access various digital services.

Total Profit

The total income a business earns after subtracting all expenses and costs associated with its operations.

Marginal Benefit

The added value or enjoyment a consumer gets from using an additional unit of a product or service.