Which Is Not What Owner-Managers Should Do to Try to Ensure

question 10

Multiple Choice

Which is not what owner-managers should do to try to ensure long-term viability early in the life of the business?

• A) Need to understand the life cycle of the business
• B) Take specific steps in planning for growth of the business
• C) Ensure the location infrastructure is suitable for long-term needs of the business
• D) Be aware of some of the more common growth problems a business is likely to face

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Definitions:

Current Liabilities

Obligations a company must fulfill within the forthcoming fiscal year, including debts, accounts payable, and other short-term financial responsibilities.

Balance Sheet

A balance sheet is a financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Periodic Inventory System

An inventory management method where updates to inventory records are made at specific intervals, not continuously.

Inventory Account

An account on the balance sheet representing the total cost of goods a company intends to sell to customers, including raw materials, work-in-progress, and finished goods.