It Is Important That an Entrepreneur

question 59

Multiple Choice

It is important that an entrepreneur

• A) seek the assistance of outside professionals to prepare a business plan.
• B) develop an entrepreneurial team to organize the plan.
• C) prepare his or her own plan.
• D) do a and b only.

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Definitions:

Incremental Sales

The additional revenue generated from a specific business action or decision, such as running a marketing campaign or launching a new product.

Cash Operating Expenses

Expenses that a company incurs during its day-to-day operations that require cash outflow.

After-Tax Discount Rate

The net discount rate that takes into account the tax implications affecting the net cost of investments or capital projects.

Working Capital

Working capital refers to the difference between a company's current assets and current liabilities. It is an indicator of a company's operational liquidity and short-term financial health.