The Difference Between Small Business Owners and Entrepreneurs Is That

question 104

Multiple Choice

The difference between small business owners and entrepreneurs is that small business owners:

• A)are innovators
• B)started the business to pursue their idea for a new product or service
• C)are risk takers
• D)accept the status quo and take a short-term view of the future
• E)are accurately described by all of the above

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Definitions:

Constant Rate

A fixed percentage or value that does not change over a specified period of time, often used in financial formulas to calculate growth or decay.

Retained Earnings

The portion of net income not distributed to shareholders but instead reinvested in the business or used to pay off debt.

Common Equity

Represents the stockholders' equity or the amount available to common shareholders as a portion of the net worth of a company.

Capital Structure

The mixture of debt and equity financing that a company uses to fund its operations and growth.