The Risk Component for Entrepreneurs Is ______

question 84

Multiple Choice

The risk component for entrepreneurs is ______.

• A)unavoidable and entrepreneurship is ideal for extreme risk-takers
• B)can be reduced with a good business plan
• C)can be reduced with diversification
• D)can be managed with the cycle of act-learn-build

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Definitions:

Annually Compounded

A compound interest calculation where the interest is added to the principal at the end of each year.

Nominal Rate

The stated interest rate of a bond or loan, without accounting for compounding or inflation.

Mortgage Loan

A loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.

Compounded Monthly

A method where the interest is calculated on a monthly basis and added to the principal sum, allowing the interest to grow over time through compounding.