Ivan Has Decided to Start a Business Installing Voice Over

question 100

Multiple Choice

Ivan has decided to start a business installing voice over Internet protocol (VOIP) software on computers, which allows individuals to make phone calls via the Internet. To get his business up and running, Ivan has decided to place an ad in the paper. He does not have any money, so he has to put the cost of the ad on his credit card. Ivan will spend more money than he will make in the first three months. Which stage of its life cycle is his VOIP business is in?

• A) maturity
• B) decline
• C) introduction
• D) growth

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Definitions:

Machine Operators

Individuals responsible for setting up, operating, and maintaining machines in a manufacturing environment.

Direct Materials Used

Direct materials used are the raw materials directly incorporated into a product being manufactured, contributing to the cost of goods sold.

Factory Overhead

All indirect costs associated with manufacturing, including indirect labor, materials, and expenses that cannot be directly traced to a product.

Current Assets

Cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business.