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Discuss why is it important for a business to know their break-even point?

The Break–Even Point

Make sure to take the Break-even point tutorial provided in the Learning Activities before responding to this Discussion.

Go to the U.S. Small Business Administration website and search for “break-even point” at http://www.sba.gov/

Then answer the questions posed:

  1. Why is it important for a business to know their break-even point? Cite an example and support your answer with your rationale.
  2. How long should a business be prepared financially to survive if they do not make a profit? (Support your answer with references.)
  3. What are the resources that Tim, the shop’s owner, could use if he needs to gain access to more funds to operate his business in the near future?

Respond per your Syllabus guidelines


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