Entrepreneurship and Small Business (ESB) Certification Practice Exam

Which of the following is a recurring cost for most businesses?

1. Business plan development

2. Logo design

3. Employee wages

4. Market research

The correct answer is: Employee wages

Employee wages represent a recurring cost for most businesses because they are part of the regular operating expenses that a company incurs on an ongoing basis. This cost is typically incurred on a weekly, bi-weekly, or monthly basis and is essential for maintaining staff who contribute to the business's operations and productivity. In contrast, business plan development, logo design, and market research are usually considered one-time or occasional costs. Business plan development occurs primarily at the startup phase or when significant changes are needed, logo design is often a part of the branding process that may not be repeated frequently, and market research can be periodic, depending on the business's needs for insights into customer preferences or market trends. Consequently, wages stand out as a continuous, necessary expenditure that supports the day-to-day functioning of a business.