Suppose an Entrepreneur Starts a Business Earning $2M in Revenue

question 13

Multiple Choice

Suppose an entrepreneur starts a business earning $2M in revenue in 2009 while at the same time incurring $1.8M in costs.If the entrepreneur's best outside alternative employment opportunity is to earn $300K,what are the firms accounting and economic profits?

• A)$200K,-$100K
• B)$200K,$100K
• C)$300K,$100K
• D)$300K,-$100K
• E)$200K,$200K

Recognize the role of product extension and adaptation in global markets.

Understand the significance of direct investment in establishing foreign subsidiaries or divisions.

Understand different global marketing product and promotion strategies.

Comprehend the challenges and complexities of global distribution.

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Definitions:

Monthly Salary

A fixed amount of payment received by an employee from an employer on a monthly basis.

Unused Supplies

Supplies that have been purchased but not yet used in the operation of a business.

Prepaid Insurance

An asset account on the balance sheet that represents a payment made for insurance services that have not yet been received or used up within the period of the insurance contract.

Accrued Fees

Fees that have been incurred but not yet paid or recorded by the entity.