INTRODUCTION TO ENTREPRENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An expense that is the same during some months, and different during other months.
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An expense that typically does not change month to month.
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An expense that typically varies from month to month.
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None of the above.
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Detailed explanation-1: -A fixed expense is a necessary, ongoing cost that does not fluctuate with changes in production or sales volume. It is “fixed” in the sense that it remains the same even when business conditions change. The most common examples of fixed expenses are office rent, utilities, and insurance.
Detailed explanation-2: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
Detailed explanation-3: -Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month.
Detailed explanation-4: -Fixed expenses, like rent, stay the same month-to-month. Variable expenses, like food and groceries, can vary month-to-month, and generally aren’t due on a set date. Periodic expenses include expenses that are billed quarterly or annually, as well as expenses like vehicle maintenance that come up now and then.
Detailed explanation-5: -Rent or mortgage payments. Renter’s insurance or homeowner’s insurance. Cell phone service. Internet service. Health, disability or life insurance premiums. Property taxes. Childcare expenses. Student loan or car loan payments. 11-Apr-2022