In the context of financial tools, identify a difference between how traditional Fortune 500 firms and entrepreneurial ventures approach break-even analysis.
A) Traditional Fortune 500 firms calculate breakeven using profit, whereas entrepreneurial ventures calculate breakeven using cash flow.
B) Traditional Fortune 500 firms estimate breakeven based on gross profits, whereas entrepreneurial ventures estimate breakeven using net profits.
C) Traditional Fortune 500 firms calculate breakeven from returns on initial investments, whereas entrepreneurial ventures calculate breakeven from the profit margin from each sale.
D) Traditional Fortune 500 firms estimate breakeven as the point where costs equal sales, whereas entrepreneurial ventures estimate breakeven as the point where cash flow becomes positive.
Correct Answer:
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