Starting a Business from Scratch May Be Chosen by an Entrepreneur

question 17

Multiple Choice

Starting a business from scratch may be chosen by an entrepreneur because:

• A) customers are often sympathetic to such start-ups.
• B) there is lots of government funding for this strategy.
• C) it provides a sense of satisfaction.
• D) it is the most likely strategy to lead to success.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation, with voting rights and the potential for dividends.

Outstanding

An amount of money that is still owed or an issue that has not yet been resolved.

Common Shareholders

Individuals or entities that own common stock in a corporation, giving them rights to vote on corporate matters and receive dividends.

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets in the event of liquidation, but typically without voting rights.