While Pauline Was Vacationing in Ireland, She Frequented a Fantastic

question 35

Multiple Choice

While Pauline was vacationing in Ireland, she frequented a fantastic modern coffee shop that had childcare facilities directly attached. She enjoyed companionship with other adults, while her children played and socialized in an exciting facility right next door. Upon returning to Canada, Pauline is planning to open a similar concept café in her community. This is an example of which type of new venture concept?

• A) Type A
• B) Type B
• C) Type C
• D) Type D

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year's time, such as cash, inventory, and receivables.

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or its operational cycle, whichever is longer.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for obtaining a loan.