Carrie, a Student at Metropolitan Community College, Dreams of Starting

question 174

Multiple Choice

Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

• A) The best way to learn about running a business is by getting hands-on experience. You should quit school and put your dream into action.
• B) Take courses related to small business management and look for a job with a successful businessperson, preferably in your field of interest.
• C) Since every business is unique, don't worry about advice from others. Go to a bank, get a business loan, and live your dream.
• D) Starting and managing a small business requires little more than common sense. If your idea is unique, hard work will guarantee your success.

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Definitions:

APS

Stands for Average Propensity to Save, which measures the proportion of income that households save rather than spend on goods and services.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the consuming behavior independent of current income.

Aggregate Household

The combined and total measure of all consumers in an economy, accounting for all spending and consumption.

Disposable Income

The amount of money that individuals or households have available to spend or save after income taxes have been deducted.