Ariel Wants to Start and Run Her Own Business

question 244

True/False

Ariel wants to start and run her own business. Although she acknowledges it would be helpful to earn a healthy profit, her main motivation is the exhilaration and challenge of starting and running a business. Ariel's attitude is different from most small business owners, who usually focus solely on the earnings potential of their ventures, as well as the opportunity to acquire power and prestige.

Comprehend the concept of earnings per share and factors affecting it.

Identify and calculate changes in net working capital.

Analyze the impact of dividend changes on cash flow to stockholders.

Recognize components of current assets and their liquidity.

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Definitions:

Competitive Advantage

A condition that enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with.

Resources

The total means available for economic and operational development, such as natural resources, personnel, and capital.

Strategic Decisions

Choices made by top management that have a significant impact on the direction and success of an organization.

Tentree Apparel

A sustainable and eco-friendly clothing brand known for planting ten trees for every product sold, focusing on environmental stewardship.