Which of the Following Is a Disadvantage of Starting a Business

question 17

Multiple Choice

Which of the following is a disadvantage of starting a business from scratch?

• A) It takes sheer sweat equity to build a customer base.
• B) The entrepreneur incurs high overhead costs.
• C) It results in incompetent customer service.
• D) There is no scope for creativity.

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Definitions:

Federal Unemployment Taxes

Taxes imposed by the federal government on employers to fund state workforce agencies and unemployment compensation for workers who have lost their jobs.

Federal Income Taxes

Taxes imposed by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Payroll Tax Expense

Taxes that are withheld or levied on an employer's payroll, including both employer and employee contributions, such as social security and Medicare taxes.

Federal Income Taxes

Taxes imposed by the government on the income of individuals or corporations, with rates varying based on income levels and types.