Which of the Following Best Exemplifies an Entrepreneur

question 117

Multiple Choice

Which of the following best exemplifies an entrepreneur?

• A)Sam, an employee at a supermarket, is solely responsible for all the purchases and sales at the grocery department.
• B)Joe recycles old household articles to build phones, radios, and other things for his personal use.
• C)Max makes his living by investing in small companies that have the potential to grow.
• D)Javier purchased an invention of his friend to start a company that processes plastic bags into synthetic cloth.
• E)Ryan invented an anti-aging formulation and sold it to a major pharmaceutical firm.

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Definitions:

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to yield returns that exceed the costs of financing.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and investment risk.

Option to Abandon

A strategic financial decision allowing a company to cease an investment or project, thereby limiting its losses.

Initial Cost

The initial expenditure required to acquire an asset or start a project, including the purchase price and setup costs.