Disposable Personal Income

question 51

Multiple Choice

Disposable personal income

• A)is the part of national income that is available to households to spend or save.
• B)equals personal income, minus personal income taxes, plus transfer payments and interest on public debt.
• C)is equal to wages.
• D)includes capital consumption allowances.
• E)includes undistributed corporate profits.

Appreciate the role of timing in the entrepreneurial process.

Grasp the concept of threshold in ventures and its relation to overcoming failure.

Describe the base concepts and the importance of sustainability in the Timmons Model.

Discuss the advantages and disadvantages of lifestyle ventures and identify the paradoxical conflicts in the entrepreneurial process.

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Definitions:

Discounted Note

Refers to a promissory note issued at a price lower than its principal value, to be redeemed at face value at maturity.

Maturity Date

The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Maturity Value

The amount payable to the investor at the end of a debt instrument's life, including principal and any remaining interest.

Interest

The cost of using borrowed money or the return on invested funds, typically expressed as an annual percentage of the principal.