Jake Is an Innovative Engineering Graduate Who Works for a Large

question 255

Multiple Choice

Jake is an innovative engineering graduate who works for a large company that makes adhesive products for commercial and consumer use. One of his primary responsibilities is to initiate and develop new products to complement the firm's current product line. Jake's company is ___________

• A) intrapreneurial
• B) entrepreneurial
• C) an outside consultant for other firms
• D) at a disadvantage because it is trying to operate like a small business

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Definitions:

Net Income

The net income of a business once all costs and taxes are subtracted from its total earnings.

Cash Basis

The cash basis is an accounting method where revenues and expenses are recognized only when cash is received or paid, as opposed to when they are incurred.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update the balances of certain accounts.

Financial Statements

Formal records of the financial activities and position of a business, including the balance sheet, income statement, and cash flow statement.