After Graduating from College, Joseph Tantillo Decided to Start a Retail

question 23

Multiple Choice

After graduating from college, Joseph Tantillo decided to start a retail Web site that specializes in personalized Greek apparel.To fund his Web site, he borrowed money from his parents (who expect to be repaid with interest) .In other words, he used _____ financing.

• A)debt
• B)liquid
• C)equity
• D)venture
• E)entrepreneurial

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Definitions:

Initial Cash Outlay

The initial funds required for an investment or project, including costs such as acquisition, setup, and related expenses.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, a measure of how sales growth translates to growth in operating income.

Forecasting Error

The difference between the actual outcome and the predicted value in a forecast.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company's fixed versus variable costs.