All firms have to incur costs because of
A) the resources they use.
B) buyers they sell to.
C) the profits they earn.
D) revenues they receive.

Question

Quizplus · Accepted Answer

All firms have to incur costs because they need to use resources in order to produce goods or services. These resources can include materials, labor, and equipment. The other choices (B, C, and D) are not necessarily true for all firms. Not all firms have buyers they sell to (for example, a small business might not have any customers yet), not all firms earn profits (for example, a non-profit organization), and not all firms receive revenues (for example, a company might be in the early stages of development and not yet generating any revenue).

All Firms Have to Incur Costs Because of