Entrepreneurship and Business Expenses Quiz

What are the two smaller groups of operating costs?

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

• Product costs and administrative costs

• Fixed costs and variable costs

• Direct costs and indirect costs

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

• Fixed costs

• Direct costs

• Indirect costs

• Variable costs

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

• Devoting resources to optimize every step of the process

• Maximizing automation

• Minimizing costs wherever possible

• Outsourcing expensive tasks

Which company is an example of a cost-driven structure in the grocery industry?

• Goodwill

• Walmart

• The Ritz-Carlton

• No Frills

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

• Minimizing costs wherever possible

• Maximizing automation

• Creating more customer value

• Outsourcing expensive tasks

Which company is an example of a value-driven structure in the hotel industry?

• No Frills

• The Ritz-Carlton

• Goodwill

• Walmart

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

• Economy of scale

• Economy of scope

• Economy of size

• Economy of range

What is an example of a social entrepreneur business?

• Warby Parker

• Ryanair

• Dollar Store

• Southwest Airlines