Courtney Young is the founder of a company in the semiconductor industry. Courtney's firm is still in the feasibility analysis stage and doesn't have a product that is ready to sell. The company is spending about $25,000 per month and expects to maintain that level of spending until it reaches profitability. The $25,000 a month is Courtney's ________ rate.

Question

Quizplus · Accepted Answer

The $25,000 per month spending rate is commonly referred to as the company's "burn rate." This refers to the rate at which the company is spending its cash reserves before it reaches profitability.

Courtney Young Is the Founder of a Company in the Semiconductor