Match the Type of Knowledge with the Relevant Examples

question 66

Multiple Choice

Match the type of knowledge with the relevant examples.
-Social science knowledge with practical implications for entrepreneurship.

• A) The founders of a new social enterprise know about the needs of young disabled people in their city.
• B) The owner-manager of an established internet service provider knows which providers of venture finance to approach in order to grow her business.
• C) Economists identify a correlation between research and development spill-overs and economic growth in two countries.
• D) Organizational researchers show how entrepreneurs can use social networks more effectively.

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Definitions:

Net Present Value Rule

A financial principle stating that an investment should be made if its net present value is positive, considering the time value of money and all associated costs and revenues.

Market Value

The price in the market at which assets or services can currently be exchanged.

Investment's Cost

The total amount of money spent to acquire an investment, including all charges and fees associated with the purchase.

Average Accounting Return Rule

A capital budgeting criterion that measures the profitability of an investment as the average net income divided by the average book value.