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 was in the black
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It was in the red
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It was neutral
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It was in the purple
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Detailed explanation-1: -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. Both terms, in the black and in the red, can also refer to an individual’s personal finances.
Detailed explanation-2: -If the company’s revenue is greater than its expenses, it will have a profit. On the other hand, if a company’s expenses are greater than its revenue, it’s operating at a loss.
Detailed explanation-3: -Being in the black means that you have been profitable. You make more than you spend. Your company has more income than debt, and you can pay your expenses with ease. You may not be making a profit, but you are at least breaking even.
Detailed explanation-4: -An income statement is a financial statement that shows you the company’s income and expenditures. It also shows whether a company is making profit or loss for a given period.