Success in Highly Competitive Business Environments Depends on ___

question 91

Multiple Choice

Success in highly competitive business environments depends on ___.

• A) entrepreneurship
• B) venture capitalists
• C) access to wealthy investors
• D) establishing a corporate form of ownership
• E) minimizing risk

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Target Net Income

The specific amount of net income that a company aims to achieve within a certain period.

Margin Of Safety

A financial ratio or metric that measures the difference between actual sales and the breakeven point, indicating the extent to which sales can decline before a business incurs a loss.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.