Joe and Jim Are Planning to Open an Italian Restaurant

question 4

Multiple Choice

Joe and Jim are planning to open an Italian restaurant in a St.Louis suburb.When the two of them meet to decide what tasks need to be completed to meet their vision and then group like tasks into jobs,which one of the following management functions are they undertaking?

• A)planning
• B)organizing
• C)influencing
• D)controlling
• E)assigning

---

Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and equipment leases, remaining constant regardless of how much a company produces.

Contribution Margin

The amount by which the sale of a product or service exceeds variable costs, indicating how much it contributes to covering fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.