According to the Textbook, There Are Three Issues About Business

question 46

Multiple Choice

According to the textbook, there are three issues about business growth that entrepreneurs should appreciate. These issues are ________.

• A) not all businesses have the potential to be aggressive growth firms, business success scales, and business growth is a top priority of most entrepreneurial firms
• B) business growth is a top priority of most entrepreneurial firms, a business can't grow too fast, and businesses that price their products aggressively grow the fastest
• C) a business's valuation increases with its growth, a business can grow too fast, and business growth is a top priority of most entrepreneurial firms
• D) the majority of businesses have the potential to be aggressive growth firms, a business can't grow too fast, and business success scales
• E) not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale

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Definitions:

Revenue Recognition Principle

An accounting principle that dictates that revenue should be recognized in the accounting period in which it is earned and realizable.

Recognized

Recognized, in accounting terms, refers to the official acknowledgment of a transaction or event in the financial statements through recording it.

Customers

Individuals or entities that purchase goods or services from a business, contributing to the company's revenue.

Revenue Recognition Principle

An accounting standard requiring revenue to be recognized in the accounting period when it is earned and measurable.