Which of the Following Is a Key Contributing Factor to the Success

question 222

Multiple Choice

Which of the following is a key contributing factor to the success of a small business?

• A) Hard work, drive, and dedication
• B) Overcapitalization
• C) Strong control systems
• D) Creativity
• E) Insufficient capital

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances, and discounts from total sales.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributable to the production of the goods sold by a company, including the cost of materials and labor.

Gross Profit

The financial gain a company achieves after subtracting the cost of goods sold from its total revenue.