Entrepreneurship and Business Expenses Quiz orteg

What are the two smaller groups of operating costs?

• Cost of goods sold and selling, general, and administration costs

• Direct costs and indirect costs

• Fixed costs and variable costs

• Product costs and administrative costs

Which type of costs fluctuate based on the output of goods or services?

• Variable costs

• Indirect costs

• Direct costs

• Fixed costs

What is the main focus of a cost-driven business structure?

• Maximizing automation

• Outsourcing expensive tasks

• Devoting resources to optimize every step of the process

• Minimizing costs wherever possible

Which company is known for its cost-driven structure and low-frills approach?

• Warby Parker

• Ritz-Carlton

• Goodwill

• Walmart

What is the main focus of a value-driven business structure?

• Maximizing automation

• Creating more customer value

• Outsourcing expensive tasks

• Minimizing costs wherever possible

Which company is known for its value-driven structure and extravagant customer service?

• Southwest Airlines

• Dollar Store

• Warby Parker

• Ritz-Carlton

What is an advantage a business can have if it produces larger quantities and spreads fixed costs around more products?

• Economy of scale

• Variable costs

• Economy of scope

• Direct costs

What is an advantage a business can have by sticking its hand in multiple product lines or services?

• Economy of scope

• Economy of scale

• Indirect costs

• Fixed costs

What type of entrepreneurs make choices that may be less profitable to maximize their impact on social, cultural, or environmental goals?

• Innovative entrepreneurs

• Serial entrepreneurs

• Corporate entrepreneurs

• Social entrepreneurs

What is the main focus of tracking expenses for entrepreneurs?

• Budgeting effectively

• Maximizing profits

• Minimizing costs

• Creating more customer value