Expenses & Costs - How to Spend Money Wisely: Crash Course Entrepreneurship

What is a potential risk for businesses even if they are doing everything else correctly?

• Poor marketing strategies

• Running out of money

• High employee turnover

• Lack of customer interest

What are the two main categories under operating costs?

• Product and service costs

• Fixed and variable costs

• Cost of goods sold and SG&A

• Direct and indirect costs

Which of the following is considered a fixed cost?

• Rent for office space

• Cost of raw materials

• Advertising budget

• Shipping expenses

What is a characteristic of a cost-driven business structure?

• Investing heavily in marketing

• Focus on high-quality service

• Offering luxury products

• Minimizing costs wherever possible

Which company is known for its cost-driven approach with a humorous twist?

• Walmart

• Southwest Airlines

• Ritz Carlton

• No Frills

What is a value-driven business more focused on?

• Expanding product lines

• Increasing automation

• Creating customer value

• Reducing production costs

What is an economy of scale?

• A way to diversify product offerings

• A cost advantage from producing larger quantities

• A strategy to increase product prices

• A method to reduce employee numbers

How can Piper improve her business profitability?

• By buying materials in bulk

• By hiring more contractors

• By reducing her marketing efforts

• By increasing her prices

What did Piper initially overlook in her business expenses?

• Gas for transportation

• Contractor wages

• Cost of paint

• Website setup

Why is tracking expenses crucial for social entrepreneurs?

• To maximize profits

• To reduce operational costs

• To increase market share

• To ensure effective budgeting