The Break-Even Point Is the Point at Which ________

question 32

Multiple Choice

The break-even point is the point at which ________.

• A) the total revenue and total costs lines intersect
• B) demand equals supply
• C) the production of one more unit will not increase profit
• D) the company can pay all of its long-term debt
• E) a firm's profit goal is reached

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Definitions:

Mortgage

An agreement in which a bank or lender provides funds to a borrower at a certain interest rate, securing the loan by temporarily taking ownership of the borrower's property. This ownership is transferred back to the borrower once the loan is fully repaid.

Drawee

The party, typically a bank, on whom a check or draft is drawn and is responsible for paying the amount specified.

Checking Account

A bank account that allows for the deposit and withdrawal of funds, typically using checks, debit cards, and electronic transfers, intended for daily transactions.

Cashier's Check

A check issued by a bank or financial institution, guaranteed by the bank itself, used for making large payments where the payee requires assurance of payment.