Entrepreneurs Weigh the Differences Between the Benefits of Starting a Business

question 266

Multiple Choice

Entrepreneurs weigh the differences between the benefits of starting a business and those things that they are likely to forego because they choose to work for themselves. Such things they are likely to pass up on are:

• A) the freedom to make their own decisions.
• B) local government benefits such as enterprise zone tax credits.
• C) employer-paid benefits such as paid vacation and health insurance.
• D) tickets to sporting events that trading partners may provide.

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Definitions:

Ordinary Course

Pertains to regular business activities and operations conducted by an entity under normal circumstances.

Security Interest

A financial mechanism that gives a lender priority over the borrower's assets or property in the case of default.

Financing Statement

A document filed by a creditor to indicate a security interest in the personal property of a debtor, used to perfect a lien.

Perfection

In the context of securing interests in property, it is the process of completing all required legal steps to enforce a security interest against third parties.