INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You limit your ability to save for for high-priced items, like higher education.
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You’ll be financially prepared for an unexpected emergency, like a broken leg or hospital stay.
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You are able to spend more on high-priced items, like higher education.
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Nothing happens, this is an appropriate practice.
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Detailed explanation-1: -If you spend money on things you want before things you need, you limit your ability to save for high-priced items, like higher education. A balanced budget typically includes the amount you earn income, the amount you pay in taxes, the amount you put away in savings.
Detailed explanation-2: -A balanced budget occurs when revenues are equal to or greater than total expenses. A budget can be considered balanced after a full year of revenues and expenses have been incurred and recorded. Proponents of a balanced budget argue that budget deficits burden future generations with debt.
Detailed explanation-3: -Variable Expense. An expense that is different from month to month. Fixed Expense. An expense that typically does not change month to month.
Detailed explanation-4: -Wages paid to workers however can vary as the number of workers increase or decrease. Hence it is not considered as a fixed cost.