External Investors Generally Require the Entrepreneur to Commit a Large

question 60

True/False

External investors generally require the entrepreneur to commit a large percentage of his or her personal assets.

---

Definitions:

Overhead Cost

Indirect costs related to the overall operations of a company that cannot be directly tied to a specific product or service, such as rent, utilities, and administration expenses.

Activity-Based Costing

A costing methodology that assigns manufacturing and non-manufacturing costs to products or services based on the activities needed to produce them.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating manufacturing overhead.

Overhead Cost

Expenses related to the ongoing operation of a business that cannot be directly traced to a specific product or service, like rent, utilities, and insurance.