Jim Johnson, Who Is at Heart a Craftsperson, Recently Started

question 46

Multiple Choice

Jim Johnson, who is at heart a craftsperson, recently started a firm to manufacture what he believes is the safest and the most versatile snowboard available. Jim's desire is to sell his snowboard to as many people as possible, because he firmly believes in the merits of his product. Jim's story best illustrates which of the following characteristics or attributes of successful entrepreneurs?

• A) execution intelligence
• B) a desire to be your own boss
• C) tenacity despite failure
• D) desire to gain financial rewards
• E) product/customer focus

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Definitions:

Operating Activities

The day-to-day activities involved in running a business, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.

Statement of Cash Flows

The Statement of Cash Flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Financing Activities

Transactions that involve raising funds for the company through debt, equity, or other financial means.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, part of the cash flow statement.