Which of the Following Is Correct Regarding Opportunities and Ideas

question 37

Multiple Choice

Which of the following is correct regarding opportunities and ideas?

• A) An opportunity and an idea are essentially the same thing.
• B) An idea almost always meets the criteria of an opportunity.
• C) An opportunity is a thought, an impression, or a notion.
• D) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
• E) It's important to discern whether a particular idea meets the tests of an opportunity.

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Definitions:

Depreciation

The systematic reduction of the recorded cost of a fixed asset over its useful life to reflect wear and tear or obsolescence.

Operating Cash Flow

The cash generated from normal operating activities of a business, reflecting its ability to generate sufficient cash to maintain operations.

Net Income

A company's overall income following the deduction of all expenditures and tax obligations from its total earnings.

Opportunity Costs

The loss of potential gain from other alternatives when one particular option is chosen over them.