A Technique That Allows the Small Business Owner to Perform

question 38

Multiple Choice

A technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called:

• A)creating the pro forma.
• B)budgeting.
• C)break-even analysis.
• D)ratio analysis.

---

Definitions:

Risk-Taking

The act of undertaking actions or making decisions that involve the possibility of facing undesirable outcomes.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit, characterized by innovation, strategy, and risk-taking.

Work Teams

Groups of employees who collaborate closely to achieve shared goals or complete projects.

Diverse Group

A group consisting of individuals from various backgrounds, cultures, experiences, and perspectives.