A ________ Is a Business That Markets a Product or Service

question 45

Multiple Choice

A ________ is a business that markets a product or service in the exact manner prescribed by the person who developed the business.

• A) Franchise
• B) Licensee
• C) Portfolio extension
• D) All of the above
• E) None of the above

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Definitions:

Variable Cost

Expenses that adjust in direct correlation with changes in production or sales levels.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range, such as rent, salary, insurance, and loan payments.

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total costs, resulting in no net profit or loss.

Variable Cost

A variable cost changes in proportion to the level of production or business activity, such as raw materials or direct labor expenses.