Rick Has Met with the Small Business Administration, Which Analyzed

question 40

Multiple Choice

Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary of the results. Out of these findings of the SBA, what might challenge Rick in his quest to become a successful entrepreneur?

• A) Rick has an external locus of control.
• B) Rick is comfortable with a moderate level of risk, and he has the confidence to act decisively.
• C) Rick has a high need for autonomy and wants to shape his own destiny.
• D) Rick is conscientious and emotionally stable.
• E) Rick has some tolerance for ambiguity because he knows he is trying to do things that haven't been done before.

---

Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, making them consistent regardless of business activity levels.

Short Run

A period of time in which at least one input, such as plant size, is fixed and cannot be changed by the firm, limiting its capacity to adjust output levels.

MC = P

A condition in economic theory where Marginal Cost (MC) equals Price (P), indicating optimal production levels where no additional units should be produced.

Profit

The financial gain obtained when the total revenues generated exceed the total costs incurred by a business.