Which of the Following Is True About Corporate Entrepreneurship

question 84

Multiple Choice

Which of the following is true about corporate entrepreneurship?

• A)Corporate entrepreneurs focus on less quantitative performance measures that are not related to money.
• B)The purpose of corporate entrepreneurship is to create value for the public.
• C)Corporate entrepreneurs face more difficulties attracting capital from angel investors,venture capitalists,or banks.
• D)Corporate entrepreneurship results in new companies that often continue to work closely with the parent company.
• E)Corporate entrepreneurs often face difficulties in the form of hiring and compensating employees.

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Definitions:

Price/Earnings

Also known as the P/E ratio, this measures a company's current share price relative to its per-share earnings.

Profit Margin

A financial metric expressing the percentage of income that remains as profit after all expenses, including taxes, are subtracted from total revenues.

Acid-Test

A financial metric that assesses a company's ability to pay its current liabilities with its quick assets (cash, marketable securities, and receivables).

Operating Segment

An operating segment is a component of a business that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.