Janice Was Thrilled with the First Two Years of Operations

question 100

Multiple Choice

Janice was thrilled with the first two years of operations.Her new company-specializing in manufacturing and distributing yoga mats,props,and yoga wear-had been growing steadily and was on track to make a 14 percent profit at the end of this,her second year.Then she started to notice sales slipping in the 11th month of the year.This is a month that normally starts to see sales increases.She had just hired a key employee to work on business development,and she wondered if this downturn would trend into the 12th month and then into her third year of business.Thankfully Janice had some good advice when she launched her venture because she knew exactly how to handle the situation.Along with her business plan,she had created a(n) ________.

• A)employee management plan
• B)contingency plan
• C)downsizing plan
• D)strategic plan

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Definitions:

Seller

An individual or entity that offers goods or services for sale to consumers or other businesses.

Operating Expenses

Costs incurred in the day-to-day operations of a business, such as rent, utilities, and salaries, excluding the cost of goods sold.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the margin earned before accounting for operating expenses.

Sales

Transactions where goods or services are provided in exchange for payment.