Match the Term with Its Definition

question 98

Multiple Choice

Match the term with its definition.
-Projections of a company's financial statements for up to five years, including balance sheets, income statements, and statements of cash flows, as well as cash budgets

• A)business model risk
• B)comprehensive plan
• C)cost structures
• D)executive summary (overview)
• E)exit strategy section
• F)key resource requirements
• G)management team section
• H)offering
• I)operations and development plan
• J)pivoting
• K)pro forma statements

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profits.

Contribution Margin

The residual amount from sales income post the subtraction of variable costs, signifying its role in offsetting fixed expenses and creating profit.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor expenses.

Flexible Budget

A flexible budget adjusts based on actual revenue levels or other external factors, allowing for more dynamic and responsive financial planning.