ENTREPRENEURIAL OPPORTUNITIES
IDENTIFYING AND EVALUATING BUSINESS OPPORTUNITIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The point when the company makes exactly enough money to pay for itself, without making extra as a profit, is the ____ point.
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Net profit
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Gross profit
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Break-even point
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Revenue
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Explanation:
Detailed explanation-1: -The break-even point is the point at which neither a profit or a loss is incurred. Break-even occurs where total contribution is exactly equal to fixed cost and hence sales revenue is exactly equal to variable cost plus fixed cost.
Detailed explanation-2: -This is the point where your total revenue (sales or turnover) equals total costs. At this point there is no profit or loss-in other words, you ‘break even’. Knowing your break-even point can help you make a decision about your selling prices, set a sales budget and prepare your business plan.
There is 1 question to complete.