Which of the Following Is Not a Common Reason Why

question 72

Multiple Choice

Which of the following is not a common reason why business plans fail?

• A)objectives are not measurable
• B)no customer need was established
• C)the entrepreneur has no experience in the planned business
• D)the promotional strategy was not taken seriously

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Definitions:

Absorption Costing

An evaluation technique that assimilates all production costs, covering direct materials, direct labor, and variable and fixed overheads, into the price of a product.

Net Operating Income

An indicator of a firm's profitability from standard operations, excluding non-operational income and expenses like taxes and interest.

Operations

The activities involved in running a business, production, or system effectively and efficiently.

Contribution Margin

It refers to the amount of revenue remaining after deducting variable costs, which can contribute to covering fixed costs and generating profit.