Assume a Start-Up Business Has Forecasted That Expenses Will Exceed

question 12

Multiple Choice

Assume a start-up business has forecasted that expenses will exceed revenues during the first year of operation. Which of the following actions can owners/managers enact to improve operating results?

• A) Increase price
• B) Extend operating hours to increase sales
• C) Reduce variable costs
• D) Reduce fixed costs
• E) All of the above

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Definitions:

Technological Change

Technological change encompasses the improvements in technology that enhance productivity or efficiency in the production or delivery of goods and services.

Health Benefits

Advantages or positive effects on one's health obtained from products, services, or activities, often associated with employment or insurance plans.

Cranberries

A type of small, acidic, red berry, commonly found in bogs or wetlands, used in a variety of foods and beverages.

Price Of Oil

The cost per barrel of crude oil, which fluctuates based on global market conditions, supply and demand, and geopolitical events.