In the Beginning of a New Business, the Only Thing

question 67

Multiple Choice

In the beginning of a new business, the only thing the new business person has is ______.

• A) vision
• B) capital
• C) assets
• D) a customer base

---

Definitions:

Incremental Manufacturing Cost

Additional costs incurred for manufacturing one more unit of a product.

Financial Reporting

The communication of financial information, such as balance sheets and income statements, to stakeholders to help in decision-making.

Contribution Margin

The differential between sales and variable costs, indicative of a product's profitability before fixed costs are subtracted.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production expenses, in contrast to fixed costs.