More People Are Discouraged to Test Their Skills as Entrepreneurs

question 7

True/False

More people are discouraged to test their skills as entrepreneurs because the failure rate among small businesses has been increasing in recent years.

---

Definitions:

Variable Overhead Costs

Expenses that change with the level of production or business activity, including costs like utilities and indirect materials.

Planning Budget

A budget prepared for a specific level of activity, outlining expected revenues, expenses, and resource requirements.

Employee Salaries

Regular payments made to employees for performing their job duties.

Service Company

A business that earns revenue by providing intangible products or services, as opposed to selling physical goods.