Question

1. Costs such as security deposit, inspections, and attorney or broker fees are examples of?
A) upfront costs B) Investment Costs C) Commerical Costs D) external investments

2. Choosing the right location for your business is critical to its overall success.
A) True B) False

3. Cultural consideration of residents near potential locations is necessary before opening your business
A) True B) False

4. When setting the price for your good or service you should consider?
A) Supply and Demand B) Government Regulations C) The Economy D) All of the above

5. The _____ is the combination of variable costs that are necessary to make the product or provide the service.
A) Variable expenses B) Costs of goods sold C) fixed cost D) up-front costs

Answer 1

Answer:1) C 2) A 3) A 4) D 5) A

Explanation:

Answer 2

1.  Upfront Costs (A)

2. True

3. True

4. All of the above (D)

5. Cost of Goods Sold

Explanation:

• If a payment is made upfront and it is made in advance or expenses which are charged at the starting of a contract, project or business activity such as inspection costs, earnest deposit, etc
• Cultural factors have a significant effect on the purchasing decision of a individual. There are various sets of behaviors, values and principles that are formed by each person from his or her family status and history.  To succeed, companies need to recognize the nature of their new market (consumers)
• Supply and demand affects the prices of the products; when the supply is more than demand the prices decrease and when the demand is more than the supply, prices increase. In relation to price pricing a commodity, the government can enforce such legislation. The prices of products which it considers to be necessary can be also regulated. The economic situation must also be taken into account. Many goods are more prone than others to increases in unemployment and wages. Luxury goods manufacturers would have to lower prices especially when the economy is in a decline.
• Cost of goods sold (COGS) is the accumulated total of all variable costs used to create a product/service that has been sold. These costs fall into the general sub-categories of direct labor, materials, and overhead.