Which of the Following Is True About Factors That Adversely

question 75

Multiple Choice

Which of the following is true about factors that adversely influence the accuracy of an entrepreneur's risk perceptions?

• A)An entrepreneur's belief in the law of small numbers increases the risk he or she perceives with an opportunity.
• B)Because individuals are more likely to obtain good information and less likely to obtain bad information,small samples of information are likely biased negatively.
• C)Most entrepreneurs have access to large databases.
• D)The control that an entrepreneur feels with respect to the opportunity's outcome may influence perceptions of the idea's risk.
• E)Law of small numbers and the illusion of control positively influence the accuracy of risk perceptions when evaluating opportunities.

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Definitions:

W-3

A tax form used in the United States to summarize the total wages paid and taxes withheld for employees to the Social Security Administration.

Federal Unemployment Tax Return

A tax return specifically for reporting the amount of federal unemployment tax a business is responsible for paying, related to the wages paid to employees.

Form 940

An IRS form used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' paychecks and FICA taxes.