INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is losing money.
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It is making money.
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It is breaking even.
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It is unknown until taxes are paid.
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Detailed explanation-1: -Profit is the money a business pulls in after accounting for all expenses.
Detailed explanation-2: -Expenses are the costs a business incurs from its core operations, while revenue is the money it earns from selling products and services before paying expenses. Once you pay expenses, you get net income or profit, which equals the total revenues minus the total expenses from a given accounting period.
Detailed explanation-3: -What does total revenue minus total expenses indicate? The profit or loss made by the business.
Detailed explanation-4: -When making a business decision between several options, what are you determining you estimate the opportunity cost? The benefits missed when choosing one option over another.
Detailed explanation-5: -Successful entrepreneurs are driven, ambitious and willing to take risks others won’t. Being an entrepreneur takes dedication, hard work and thick skin, and it often requires being ready for anything: Expect the best, but be prepared for the worst.