ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Operating costs are the opposite of
A
utilities,
B
variable expenses.
C
fixed expenses. d. capital expenditures.
D
capital expenditures.
Explanation: 

Detailed explanation-1: -Capital expenditures are major purchases that a company makes, which are used over the long term. Operating expenses, on the other hand, are the day-to-day expenses that a company incurs to keep its business running.

Detailed explanation-2: -Capital expenditure (goodwill, the purchase of business premises, plant and machinery used in the business process and so on) in practice is the opposite of revenue expenditure.

Detailed explanation-3: -Learn about our editorial policies. There are two main categories of expenses that a business can incur: overhead and operating expenses. Operating expenses are those that a business incurs as a result of its normal operations. Overhead expenses, on the other hand, are what it costs to run the business.

Detailed explanation-4: -Conclusion. Capital expenditure is money that is spent on long-term assets. Operating expenditure is money that is spent on things that are used in the day-to-day operations of the business.

Detailed explanation-5: -A capital expenditure, or Capex, is money invested by a company to acquire or upgrade fixed, physical or nonconsumable assets. Capex is primarily a one-time investment in nonconsumable assets used to maintain existing levels of operation within a company and to foster its future growth.

There is 1 question to complete.