A Prospective Entrepreneur Is Evaluating the Suitability of His Own

question 69

Multiple Choice

A prospective entrepreneur is evaluating the suitability of his own characteristics for an entrepreneurial career.He realises that he should be prepared to assume:

• A)moderate risks.
• B)no risks - that is, he should plan to operate conservatively.
• C)risks similar to those a gambler assumes in Las Vegas.
• D)psychological risks but not financial risks.

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Definitions:

Net Assets

The difference between total assets and total liabilities, representing the residual interest in the assets of an entity after deducting liabilities.

Unrecognized Prior Service Cost

Refers to costs from past services not yet recognized in financial statements for pension plans.

Accrued/Prepaid Pension Cost

Expenses related to pension plans that have been incurred but not yet paid, or paid in advance of the period to which they apply.

Accumulated Other Comprehensive Income

A component of shareholders' equity that includes all changes in equity from non-owner sources, excluding net income.