In Order to Improve His Chances of Small Business Success,Demitri

question 92

Multiple Choice

In order to improve his chances of small business success,Demitri prepared a business plan.Most often,a positive outcome of this exercise is:

• A)the plan will meet federal reporting requirements of the Internal Revenue Service.
• B)the plan ensures financing will be available from the Small Business Administration.
• C)the plan enables Demitri to think carefully about all aspects of his business ideA
• D)the plan will protect Demitri from failure.

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Definitions:

Interest Rate

The remuneration, depicted as a fraction of the principal, that a lender exacts from a borrower for asset utilization.

Income Effect

A change in the consumption patterns of individuals or economies due to a change in real income or purchasing power.

Labor-Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied by workers and the wage rate.

Income Effect

How an alteration in income levels for a person or economy affects the demand for a particular good or service.