The Term Microfinancing Refers to

question 85

Multiple Choice

The term microfinancing refers to

• A)lending small sums of money to the poor so that they can work their way out of poverty.
• B)welfare handouts for poor people in developing countries.
• C)welfare handouts for poor people in industrial countries.
• D)pyramid schemes.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent and salaries.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

Breakeven Volume

The quantity of products sold or services rendered at which total revenues equal total costs, resulting in no net loss or gain.

Sales Revenues

The income earned by a company from its sales of goods or the provision of services before any costs or expenses are deducted.