Which One of the Following Components Is Not a Standard

question 29

Multiple Choice

Which one of the following components is not a standard component of a sound business model?

• A) produce low-cost products
• B) generate revenues
• C) make profits
• D) produce free cash flows

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly related to production.

Differential Income

The difference in income between two alternative business decisions, used in assessing the financial viability of each option.

Special Stitching

Unique or customized sewing techniques used to enhance the design or functionality of a textile product.

Variable Cost

An expense that changes in direct proportion to the activity level or volume of production in a business.