According to the Threshold Concept,which of the Following Ventures Is

question 29

Multiple Choice

According to the threshold concept,which of the following ventures is likely to overcome failure?

• A) A venture that reaches a critical mass of 10 people with $500,000 in revenues
• B) A venture that reaches a critical mass of 5 people with $2 million in revenues
• C) A venture that reaches a critical mass of 15 people with $2.5 million in revenues
• D) A venture that reaches a critical mass of 6 people with $1.5 million in revenues

---

Definitions:

Mark-up

The margin calculated by subtracting the cost of a product or service from its sale price, then dividing by the cost, expressed as a percentage.

Retail Price

The price at which goods are sold to the public, typically higher than the wholesale price.

Mark-up

Increment on the buying price of products targeted to offset operational costs and profits.

Selling Price

The price at which a product or service is sold to the consumer.