The Partnering for Success Feature in Chapter 3 Focuses on the Task

question 61

Multiple Choice

The Partnering for Success feature in Chapter 3 focuses on the task of finding the right business partner. According to the feature, which of the following is an incorrect rule-of-thumb in finding a business partner?

• A) Know the skills and experiences you need in a partner.
• B) Make sure you and your partner's work habits are compatible.
• C) Make sure you and your partner have common goals and aspirations.
• D) Pick a partner that is similar rather than different from you in terms of skills, abilities, and functional background.
• E) Hire a lawyer to negotiate the partnership agreement.

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Definitions:

Estimated Loss

An anticipated loss that a company might suffer due to various risks and uncertainties, and which is accounted for in advance.

Appropriation

The allocation or setting aside of funds by a company for a specific purpose or the restriction of retained earnings distributed to shareholders.

Inventory Finance

A line of credit or loan specifically intended to help businesses purchase inventory, often secured by the inventory itself.

Long-Term Note

A debt obligation with a repayment period typically exceeding one year, often used for significant purchases or investment.