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Therese is a talented designer who wants to start her own women's swimwear and beach towel line. But first, she is trying to decide which form of business ownership is right for her. As a young mom who hopes to send her children to college some day, she does not want to jeopardize her savings in any way. In order to overcome these risks, Therese should start her business as a sole proprietorship.
Total Fixed Expenses
Expenses that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.
Net Operating Income
The profit a company makes after deducting operating expenses, excluding interest and taxes.
Break-Even
The point at which total costs and total revenues are equal, resulting in neither profit nor loss.
Sales Dollars
The total amount of revenue generated from the sale of goods or services, expressed in monetary units.
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