What Portion of the Firms Going Public in 2014 Were

question 56

Multiple Choice

What portion of the firms going public in 2014 were unprofitable?

• A) Less than one tenth
• B) About one quarter
• C) About one half
• D) Nearly three quarters
• E) Nearly all

---

Definitions:

Direct Materials

The raw materials that are directly incorporated into a finished product during the manufacturing process.

Fixed Overhead

Indirect costs that do not change with the level of production, such as rent and salaries.

Variable Overhead

Indirect operating costs that vary with the level of production activity, such as utilities and materials.

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or services.