How Are Entrepreneurs Different from Managers

question 12

Multiple Choice

How are entrepreneurs different from managers?

• A) Entrepreneurs combine their ideas with resources to create a business that fills a market need; managers direct the effort of others to achieve an organization's goals.
• B) Managers are more likely than entrepreneurs to use the resources of the organization to accomplish personal goals.
• C) Entrepreneurs are more risk averse than managers.
• D) Managers typically are more independent than entrepreneurs.

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Definitions:

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Receivable Turnover

A financial metric that measures how effectively a company is collecting on its receivables, calculated as sales divided by the average accounts receivable.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Acid-test Ratio

A financial metric that assesses a company's ability to quickly liquidate assets to cover short-term liabilities, excluding inventory.