Which of the Following Is NOT True in Regards to Small

question 34

Multiple Choice

Which of the following is NOT true in regards to small and medium-sized enterprises (SMEs) .

• A)They create approximately 50% of total value added in the world.
• B)They generate 60-90% of employment, depending on where they are located.
• C) Each year 4-6% of the adult working population in North America, Western Europe, Central and Eastern Europe attempt to start a new venture.
• D) Around the world, a majority of entrepreneurial firms (including 60% of start-ups in the United States) succeed within 6 years.

Comprehend the fundamental accounting concepts including the business entity concept and the cost concept.

Recognize the significance and application of Generally Accepted Accounting Principles (GAAP).

Identify the primary bodies involved in the development and governance of accounting standards in the United States.

Understand the characteristics, formation, and financial dynamics of corporations.

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Definitions:

Restrictions on Advertising

Regulations or limitations placed on the content, timing, and medium of advertising to protect consumers and promote fair competition.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Monopolistic Competition

A market structure characterized by many firms selling similar but not identical products, with each having some control over its own prices.

Price Makers

Entities in a market that have the power to set prices for goods or services because they hold significant control over the market or the product.