When Entrepreneurs Believe That They Are Responsible for What Happens

question 28

Multiple Choice

When entrepreneurs believe that they are responsible for what happens to them and that their own actions determine important outcomes such as the success or failure of a new business, they have

• A)an external locus of control.
• B)less openness to experience.
• C)moderate need for achievement.
• D)an internal locus of control.

Recognize ethical considerations in financial management and reporting.

Understand the benefits and purposes of a statement of cash flows in financial analysis.

Distinguish between accrual basis and cash basis accounting in the context of cash flows.

Understand the differences between the direct and indirect methods for reporting cash flows.

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Definitions:

Congressional Enactments

Laws and regulations that have been formally approved and passed by both houses of Congress.

Federalists

Members of a political party or movement in the late 18th and early 19th centuries in the United States that supported a strong central government, the ratification of the U.S. Constitution, and an expansive interpretation of federal government powers.

National Government

The national government refers to the government of a whole nation, as opposed to subnational or local governments, and is responsible for the governance of a country.

Direct Election

A voting system where the public votes directly for representatives or leaders rather than through an intermediary, like an electoral college.