The Primary Reason Why Individuals Are Willing to Pay Entrepreneurs

question 188

Multiple Choice

The primary reason why individuals are willing to pay entrepreneurs to organize production is

• A)that they have to guarantee that the entrepreneur will make a profit
• B)they avoid taxation when activities are organized by someone else
• C)that it is better for businesses to pay taxes than individuals
• D)that it reduces transaction costs
• E)that entrepreneurs are more vulnerable in the case of the owner

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Definitions:

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.

Required Disclosure

Information that entities are legally mandated to provide to stakeholders, regulators, or the public within financial statements or reports.

Scheduled Interest

The amount of interest payments that are planned and detailed according to the terms of a loan over a certain period.

Repayment Schedule

A repayment schedule outlines the terms for paying back a loan or debt, specifying the amounts due at each payment interval, the number of payments, and the interest rate applied.