The Savvy Entrepreneurial Firm Feature in Chapter 6 Focuses on Three

question 26

Multiple Choice

The Savvy Entrepreneurial Firm feature in Chapter 6 focuses on three companies: Songkick, GrubHub, and Instagram. The overarching point of the feature is ________.

• A) most business plans require major changes after the business is launched and the founders start getting customer feedback
• B) the degree to which business plans pan out as their founders envisioned varies
• C) most business plans require only minor changes after the business is launched and the founders start getting customer feedback
• D) the most effective business plans take four to eight weeks to complete
• E) most business plans are quickly discarded after the business is launched

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Definitions:

Operating Activities

Activities related to the day-to-day business operations, such as selling products or services, which generate most of a company's cash flow.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of an entity at two or more points in time for comparison purposes.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders in cash.

Operating Activities

Activities that are directly related to the day-to-day operations of a business, generating revenue and expenses.