When Determining How to Allocate Scarce Resources, an Entrepreneur Should

question 7

Multiple Choice

When determining how to allocate scarce resources, an entrepreneur should:

• A) Focus on the company's key success factors
• B) Spread resources around to gain experience
• C) Focus exclusively on marketing
• D) Focus exclusively on technology
• E) None of the above

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Definitions:

Sales Discount

A reduction in the price of a product or service offered to customers to encourage prompt payment.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost and risk of loss or damage once the goods are shipped by the seller.

Perpetual Inventory Method

A system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Accounts Payable-Emma Co.

The amount of money Emma Co. owes to its suppliers or creditors for items or services purchased on credit.