According to the Textbook, in a Survey of 65 Start-Ups

question 56

Multiple Choice

According to the textbook, in a survey of 65 start-ups, ________ of the founders reported that they got their business ideas through social contacts.

• A) 90 percent
• B) 50 percent
• C) 66 percent
• D) 12 percent
• E) 33 percent

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Definitions:

Economic Order Quantity

The ideal order quantity a company should purchase to minimize its inventory costs including holding, shortage, and order costs.

Carrying Cost

This is the total cost of holding inventory, including storage, handling, insurance, and opportunity costs.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Variable Cost

Costs that change in proportion to the good or service that a business produces.