Entrepreneurs Learn That There Are Many Legal and Financial Issues

question 77

Multiple Choice

Entrepreneurs learn that there are many legal and financial issues involved in starting their business.The best way for the small business owner to resolve these issues and protect the firm's resources is:

• A)for the owners)to trust his/her common sense.
• B)to hire a full-time lawyer and accountant who work exclusively for the small business.
• C)defer making decisions regarding these issues until the company is bigger.
• D)seek and pay for expert guidance and assistance.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming all resources are fully and efficiently utilized.

Input Price Ratio

The ratio of the prices of the inputs used in the production of goods or services.

Absolute Advantage

A condition in which a country, individual, or company can produce a good or service at a lower cost per unit than competitors can.

Comparative Advantage

The ability of a country, individual, or company to produce a good or service at a lower opportunity cost compared to others.