An Entrepreneur

question 162

Multiple Choice

An entrepreneur

• A)always makes a profit
• B)starts with an idea, organizes the resources to bring the idea to life and assumes the risk of profit or loss
• C)always avoids risk
• D)is a parasite that benefits by not paying other resources for their services
• E)is the manager who runs an enterprise and keeps the customers happy

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Definitions:

Bankruptcy Probabilities

Bankruptcy Probabilities represent the likelihood of a company or entity being unable to meet its financial obligations and thus having to declare bankruptcy.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

Tax Savings

The reduction in income tax obligation achieved through various deductions, credits, and exemptions.

Pre-merger WACC

The Weighted Average Cost of Capital for a company before undergoing a merger, representing its cost of funds.