Which of the Following Is a Characteristic of Entrepreneurship

question 154

Multiple Choice

Which of the following is a characteristic of entrepreneurship?

• A) the ability to navigate bodies of water
• B) it is produced using physical capital
• C) it is used up quickly in the production process
• D) it is a pre-existing resource like land
• E) it is associated with risk taking and innovation

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Definitions:

Diversification

The reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks.

Present Value

Present Value is a financial concept that determines the current worth of a future sum of money or stream of cash flows, given a specific rate of return.

Current Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can provide them, often set by central banks or market forces.

Rule of 70

A method used to estimate the number of years required for a quantity to double, given its annual growth rate, by dividing 70 by that growth rate.