When You Believe You Have What It Takes to Run

question 6

Multiple Choice

When you believe you have what it takes to run a business, you need to define what your ____ needs are.

• A) facility
• B) insurance
• C) start-up
• D) marketing

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Definitions:

Net Present Value

A calculation that determines the current value of a series of future cash flows, discounted back to their present value at a specific discount rate.

Funding Requests

Applications or appeals for financial support, typically made by businesses or organizations to potential investors or grant bodies.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales volume, indicating how earnings are affected by revenue changes.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.