Which of the Following Statements Is True Regarding the Profitability

question 117

Multiple Choice

Which of the following statements is true regarding the profitability of new businesses?

• A) It may take several years for a new business to begin showing a profit.
• B) Profitability is not an important issue for new businesses.
• C) Most new businesses will turn a profit within the first year.
• D) If a company does not show a profit within the first year, it will fail.
• E) Most new businesses are highly profitable when they first start.

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Definitions:

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.

Investment Account

A financial account that holds securities, shares, or other investments for the purpose of long-term growth or income.

Vacation Home

A secondary residence used for leisure and vacation purposes, not as a primary living space.

Administrator

A person appointed by a court to serve as a personal representative for a person who died intestate (who made a will but failed to name an executor, or whose executor cannot serve).