Entrepreneurial Firms

question 27

Multiple Choice

Entrepreneurial firms:

• A) offer common products to customers and are not particularly innovative
• B) bring new products and services to market, that are not particularly innovative
• C) offer common products to customers, are not particularly innovative, and provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so
• D) provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so
• E) bring new products and services to market by creating and seizing opportunities

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Definitions:

Indirect Method

A financial reporting approach used to generate a statement of cash flows by adjusting net income for changes in non-cash account balances.

Declared

Often refers to the official announcement by a company's board of directors of a dividend or other corporate action.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.

Original Cost

The initial monetary value of an asset, including the purchase price and any related acquisition costs, but before depreciation or amortization.