Which of the Following Statements Concerning Small Business and Law

question 100

Multiple Choice

Which of the following statements concerning small business and law is not true?

• A) Not all laws apply to your business on the day you open.
• B) Understanding the legal system will help you be less intimidated by attorneys and the law.
• C) State laws applicable to small business are standard in all fifty states.
• D) Business and law are inseparable.

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Definitions:

Profitability Index

A financial tool used to determine the desirability of an investment or project, calculated by dividing the present value of future cash flows by the initial investment cost.

Required Return

The minimum rate of return an investor expects to receive from an investment, taking into account the investment's risk level.

Initial Cost

The acquisition cost of an asset or investment, including purchase price and any initial setup fees, before any deductions or depreciation.

Annual Cash Flows

The total amount of money being transferred in and out of a business over a year, used to assess the financial health of a business.