Because of Their Size and Limited Resources, Small Businesses Rarely

question 42

True/False

Because of their size and limited resources, small businesses rarely create innovations that are important to the U.S. economy.

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Definitions:

Profit

Profit is the financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Operating Income

Income generated from a company's regular business operations, excluding one-time events and expenses.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Fixed Costs

Costs that do not change with the volume of production, such as rent, salaries, or insurance.