As Your Good Friend Ponders Putting Some Structure to His/her

question 11

Multiple Choice

As your good friend ponders putting some structure to his/her graphic design business idea, which of the following do you not advise him/her to do?

• A) Prepare the nonchangeable marketing plan for the next three years, including marketing analysis and marketing strategy.
• B) List the work that needs to be done such as (1) computer-assisted design; (2) sales generation; (3) accounting and bookkeeping; (4) purchasing and supply ordering; and so on.
• C) List who will do the various jobs, including who will perform the computer work, who will keep the books, and who will go out and create sales.
• D) Assign responsibility and authority to certain employees.

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Definitions:

Security Market Line

A representation in financial economics that shows the relation between the risk of an asset and its expected return.

Expected Return-Beta Relationship

A concept in finance that describes the relationship between the expected return of an investment and its beta, indicating the investment's relative risk compared to the market.

Security Market Line

A line that represents the relationship between the expected return of an investment and its risk as measured by beta.

Underpriced Security

A financial security that is selling for a price believed to be below its true value or potential market price, presenting a buying opportunity.