In General, Entrepreneurs Prefer

question 156

Multiple Choice

In general, entrepreneurs prefer:

• A) more diversification.
• B) less diversification.
• C) to maximize risk, regardless of diversification.
• D) to concentrate investments in just a few sectors.

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Definitions:

Guidelines

Guidelines are recommendations or principles that aim to streamline certain processes or set standards.

Risk and Return

A financial concept indicating that the potential return on any investment is directly correlated with the level of risk taken.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Statement of Cash Flows

A document that outlines the effect of changes in income and balance sheet accounts on cash and cash equivalents, divided into sections for operating, investing, and financing activities.