It Is Not Uncommon That a New Business Will Have

question 43

True/False

It is not uncommon that a new business will have to pay for its inventory and supplies up front on a "cash on delivery" (COD) basis until it establishes a reputation for meeting its financial commitments.

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Definitions:

Operating Assets

Assets used by a business in its daily operations to generate income, including cash, inventory, and equipment.

Fixed Costs

Refers to costs that do not change in total regardless of the level of production or sales activity, like rent, salaries, and insurance.

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Performance Measurement

The process of evaluating how effectively and efficiently an organization or individual achieves its objectives.