An Evaluation of the General Environment

question 81

Multiple Choice

An evaluation of the general environment

• A) is done before the feasibility analysis.
• B) can benefit small businesses as well as large firms.
• C) will clarify the unique value of the startup idea.
• D) is appropriate only for large firms that have corporate staffs to manage the process.

---

Definitions:

Indirect Labor

The wages paid to employees who are not directly involved in the production of goods or services but support the manufacturing process, such as maintenance staff and supervisors.

Work in Process

Inventory that includes goods partially completed in the manufacturing process but not yet ready for sale.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Net Income Column

A financial statement element that shows the difference between total revenues and total expenses of a company.