It Is Normally a Good Idea for the Entrepreneur to Discuss

question 8

True/False

It is normally a good idea for the entrepreneur to discuss what he or she thinks the business is worth in a business plan.

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Definitions:

Contribution Approach

An income statement formatting that separates fixed from variable costs, showing contribution margin.

Opportunity Cost

The loss of potential gain from other alternatives when one option is chosen.

Cost Formula

An equation or method used to determine the total cost of producing goods or services, combining fixed costs, variable costs, and sometimes semi-variable costs.

Variable Selling Expenses

Costs that vary directly with the volume of sales, such as commissions and shipping fees.