Based on the Entrepreneurial Strategy Matrix, Which of the Following

question 62

Multiple Choice

Based on the entrepreneurial strategy matrix, which of the following products is most likely to have the highest risks and returns?

• A) Velcro fasteners.
• B) A tax preparation service.
• C) A new pharmaceutical drug.
• D) A new restaurant.
• E) A lawn-mowing service.

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the volume of production, such as salaries of supervisors and rent for factory space.

Deferred

Describes expenses or incomes that have been incurred but not yet realized, affecting financial statements in subsequent periods.

Released

In economic or financial contexts, this term usually refers to information, products, or assets that have been made available to the public or specific markets.

Absorption Costing

In this accounting procedure, the full scope of manufacturing costs, covering direct materials, direct labor, and both kinds of manufacturing overhead—variable and fixed—is accounted for in the product's pricing.