Jenna Franklin Is Completing the Portion of the Barringer/Ireland Business

question 24

Multiple Choice

Jenna Franklin is completing the portion of the Barringer/Ireland Business Model Template that describes the most important costs that will be incurred to support her business model. Jenna is completing the ________ structure box in the business model template.

• A) expense
• B) outlay
• C) payment
• D) overhead
• E) cost

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Definitions:

Sales

The total revenue a company generates from selling goods or services before any expenses are subtracted.

Profit Margin

A measure of profitability calculated as net income divided by revenue, expressed as a percentage, indicating the portion of each dollar of revenue that results in net income.

Gross Profit Margin

A financial metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its production costs.

Operating Expenses

Costs incurred through normal business operations, such as rent, utilities, and payroll, that are not directly tied to production.