The Time to Begin to Think of Harvesting the Business

question 31

Multiple Choice

The time to begin to think of harvesting the business is

• A)at the beginning.
• B)after the first quarter of operations.
• C)at the break-even part.
• D)when there are no more alternatives.

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Definitions:

Margin of Safety

The difference between actual or expected sales and the sales level at which a business breaks even; it measures operational risk.

Unit Sales Price

The amount of money charged for each individual unit of a product or service.