Less-Than-Professional Management Behavior on the Part of an Entrepreneur Can

question 6

Multiple Choice

Less-than-professional management behavior on the part of an entrepreneur can

• A) provide a spark to the business because of the spontaneity it introduces.
• B) be interpreted as evidence of creativity.
• C) act as a drag on business growth.
• D) normally provide a competitive edge to the firm.

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation each year over the asset's useful life.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover parts of both principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.