Entrepreneurs, in Part Because They Are Very Busy, Often Fail

question 86

Multiple Choice

Entrepreneurs, in part because they are very busy, often fail to use ________, resulting in inadequate margins to support growth.

• A) formal control systems
• B) a forward-thinking orientation
• C) an opportunity analysis
• D) venture capital
• E) total quality management systems

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Definitions:

Income Tax Rate

The percentage of income that is paid to the government as tax.

After-Tax Discount Rate

This is the discount rate that has been adjusted for taxes, used to evaluate the net present value of an investment after taking into account the tax implications.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which assumes the asset loses an equal amount of value each year over its useful life.

Initial Investments

The upfront costs required to start a new project, business venture, or investment, including equipment, inventory, and property.