A Review of Small Business Successes and Failures Indicates That

question 261

Multiple Choice

A review of small business successes and failures indicates that the:

• A) businesses that are easiest to start offer the greatest potential for long-term growth and profits.
• B) restaurant industry offers the least risk for entrepreneurs.
• C) businesses with potential of high profit levels tend to be difficult to start and hard to keep going.
• D) reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential.

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Definitions:

IAS 28

An International Accounting Standard that prescribes the accounting for investments in associates and sets the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

Non-Strategic Investments

Investments made by a company that are not part of its core operations or strategic plan.

Significant Influence Investments

Investments where the investor has the power to participate in the financial and operating policy decisions of the investee but does not control or jointly control the entity.

IFRS 9

Financial Instruments, a segment of the International Financial Reporting Standards that addresses the accounting for financial instruments, providing guidance on classification, measurement, impairment, and hedging.