You and Your Friend Have Created a Technology Start-Up

question 87

Multiple Choice

You and your friend have created a technology start-up.Since its inception,it has become very successful and you've had to hire many employees.At what point will you realize that it has become,in Simmel's terms,a large group?

• A) when you don't know everyone's name
• B) when formal job titles are created and formal hierarchies between employees emerge
• C) when you have to build cubicles for your employees' privacy
• D) when you begin issuing stock options to employees as part of their compensation package

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Definitions:

Variable Cost

Costs that vary directly with the level of production or volume of sales.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Property Taxes

Taxes paid by property owners to local governments based on the assessed value of their property.