INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
non-profit business.
|
|
|
franchise.
|
|
|
profit-making business.
|
|
|
corporation.
|
Detailed explanation-1: -Net income is the excess of revenues over expenses.
Detailed explanation-2: -A net loss occurs when total expenses are higher than total revenue. This is the opposite of net profit and is usually recorded at the bottom line of the income statement.
Detailed explanation-3: -It is sometimes referred to as earnings before interest and taxes, or EBIT. Operating Profit = Revenue-Cost of Goods Sold (COGS)-Operating Expenses-Depreciation & Amortization. Net profit furthermore removes the costs of interest and taxes paid by the business.
Detailed explanation-4: -Revenue describes income generated through business operations, while profit describes net income after deducting expenses from earnings. Revenue can take various forms, such as sales, income from fees, and income generated by property.