Entrepreneurs Differ from Other Innovators Because They

question 88

Multiple Choice

Entrepreneurs differ from other innovators because they

• A) are more inventive.
• B) bear personal financial risk.
• C) have better management skills.
• D) have the capacity to work in teams.

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Definitions:

Break-even Point

The volume of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before reaching a loss.

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.