What is the break-even point?

• A. The point at which profits exceed costs
• B. The point at which the costs of running a business equal the amount of money brought in from services
• C. The point at which taxes balance revenue
• D. The point at which all debts are paid

Answer: (B)

Break-even is the point where total revenue exactly covers total costs, so there is zero profit. The option describing costs of running the business equaling the amount of money brought in from services matches this idea: all costs are covered by revenue, leaving no leftover profit or loss. The other statements describe situations that occur after break-even (profits start once revenue exceeds costs) or relate to taxes or debt payments, which are not the break-even point.