Assume the Following Information: How Many Units Must Be

question 5

Multiple Choice

Assume the following information: How many units must be sold to generate a before-tax profit of $45,000?

• A) 3,000 units
• B) 2,500 units
• C) 4,500 units
• D) 3,750 units

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Definitions:

Unlimited Liability

A legal concept where business owners are personally responsible for all of the company's debts and liabilities, without any limit on the amount for which they could be liable.

Management Conflict

Refers to disagreements or disputes among managers or between management and employees in a workplace, often due to differences in opinions, objectives, or approaches.

Less Independence

Referring to a decrease in freedom or autonomy in making decisions or carrying out actions without reliance on others.

Joint Venture

An agreement in which two businesses form a temporary partnership to produce a product or service in a market that neither could satisfy alone.