Sarah Smith, a Sole Proprietor, Has the Following Projected Figures

question 107

Multiple Choice

Sarah Smith, a sole proprietor, has the following projected figures for next year: What is the break-even point in dollars?

• A) $426,000
• B) $2,100,000
• C) $189,000
• D) $900,000

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Definitions:

Option

A separate promise to keep an offer open for a period of time.

Verbal Offer

An offer made orally, rather than in written form, in the context of negotiations or agreements.

Binding Contract

An agreement between two or more parties that is legally enforceable and subject to legal remedies or damages in case of breach.

Separate Business

An entity or operation that functions independently from any other business interests held by the owners.