The Savvy Entrepreneurial Firm Feature in Chapter 2 Focuses on Xhale

question 33

Multiple Choice

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on Xhale and Vestagen, two entrepreneurial startups. While each firm is different and is successful in its own right, the main point of the feature is to illustrate that:

• A) entrepreneurial startups can solve the same problem in different ways
• B) entrepreneurial firms are often started by everyday people solving everyday problems
• C) one of the most important points to consider before launching a business is to determine if its window of opportunity is open
• D) finding gaps in the marketplace is an effective way of identifying business opportunities
• E) both economic and social forces impact the opportunities available to entrepreneurs

---

Definitions:

Order Costs

Expenses related to placing and receiving orders for inventory, including costs associated with ordering, shipping, and handling.

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from accounts receivable.

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.