Which of the Following Is Not a Common Characteristic of Business

question 26

Multiple Choice

Which of the following is not a common characteristic of business incubators?

• A)they make equity investments in their client firms
• B)they help entrepreneurs obtain private and public loan funds
• C)they are usually formed as nonprofit organizations that are operated by either private firms or public entities
• D)they require entrepreneurs to apply for admittance to their business incubation programs

---

Definitions:

Retained Earnings

The accumulated net income of a company that is retained by the company rather than distributed to shareholders as dividends.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity used.

Materials Quantity Variance

Represents the difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.

Raw Materials

Unprocessed or primary substances used in manufacturing to create finished goods.