Hopper Wants to Start Ice Rinx as a New Business

question 15

Multiple Choice

Hopper wants to start Ice Rinx as a new business enterprise.Josh is an attorney.Hopper most likely needs to consult Josh because

• A)ignorance of the law is a defense against liability.
• B)it adds credibility with potential investors and lenders.
• C)keeping up with laws that govern business conduct is difficult.
• D)managing accounts receivable and accounts payable is critical.

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Definitions:

Total Sales

The sum of all sales (or revenue) generated by a business during a specific period, before any deductions.

Cash Received

The money that a business or individual receives during a specific period, including revenues from sales, services, loans, or investments.

Safety Stock

Extra inventory kept on hand to prevent stockouts due to unpredictable demand or delays in supply.

Budgeted Overhead

The estimated cost of all overhead expenses that are planned or expected to be incurred over a specific period.