Mark Ghermizian Had Quit His Job and Was Looking to Start

question 4

Multiple Choice

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss.When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors.Since he has his idea, Ghermizian's next step is to:

• A)determine if he has the right personality to run a business
• B)choose a form of business organization
• C)create a name for his business
• D)get financing for his new business
• E)create prototype ads

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets excluding inventories.

Operating Cash Flows

The amount of cash generated by a company's normal business operations.

Fixed Assets

Durable physical assets employed in a company's operations, which are not anticipated to be turned into cash quickly.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for over a specific period.