INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In the red
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In the black
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Either A or B
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None of the above
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Detailed explanation-1: -The phrase “in the red” means that business is in debt and owes money. The red ink signifies financial losses for the business. It means that you have more expenses and bills than the money to pay them.
Detailed explanation-2: -In the red: Companies that have not been profitable within their last accounting period or individuals who have more liabilities than assets and are struggling to pay off debts.
Detailed explanation-3: -When a company is in the black, it has positive earnings, is financially solvent, and not burdened by too much debt. Companies that are unprofitable and showing a loss are said to be in the red.
Detailed explanation-4: -Cutting Expenses, Increasing Revenue If your business is losing money, you need to limit your expenses and increase your revenue, which is easier said than done. To make your business more profitable, review your finances to determine where the money is going.
Detailed explanation-5: -If your business losses exceed all of your income from all your other sources, you’re operating at a net operating loss, often abbreviated to NOL.