What Involves Taking the Risks That Are Necessary to Seek

question 220

Multiple Choice

What involves taking the risks that are necessary to seek out business opportunities?

• A)Invention
• B)Benchmarking
• C)Averaging
• D)Entrepreneurship

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Definitions:

Cash Disbursements

Outflows of cash for expenses, purchase of assets, or repayment of debt by a business within a given period.

Manufacturing Overhead Budget

A financial plan that estimates the expected costs related to manufacturing overhead for a specific period.

Variable Overhead Rate

A financial metric that represents the costs that vary with production levels in manufacturing, calculated as variable overhead costs divided by a measure of activity.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, insurance, and salaries of certain employees.