An Advantage of Which of These Tactics Is That There

question 101

Multiple Choice

An advantage of which of these tactics is that there is a shorter start-up time and an existing track record?

• A) Participate in a business incubator
• B) Start a new business
• C) Buy a franchise
• D) Buy an existing business
• E) Debt financing

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Definitions:

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders, represented by the company's common stock, preferred stock, and retained earnings.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.

Accrued Revenues

Income that has been earned but not yet received; recorded to recognize revenue prior to cash receipt.

Depreciation Expense

The allocated expense of a tangible asset over its useful life, reflecting the use and wear and tear of the asset.