An Entrepreneur Does All of the Following EXCEPT

question 120

Multiple Choice

An entrepreneur does all of the following EXCEPT

• A) organize.
• B) plan.
• C) hire professional managers.
• D) assume risk.
• E) operate.

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Definitions:

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of all cash flows (both positive and negative) from a project or investment equal zero.

Straight-Line Depreciation

An operation for dividing the expense of a solid asset through its functional duration in even yearly sums.

Simple Rate of Return

A calculation that estimates the profitability of an investment, dividing annual incremental net operating income by the initial investment cost.

Cash Operating Costs

Expenses a business incurs through its operations that require cash payments, excluding non-cash expenses like depreciation.