Which of These Is a Common Idea Among the Different

question 100

Multiple Choice

Which of these is a common idea among the different models for the life cycle of the small business firm?

• A)There are multiple stages.
• B)Each stage has predetermined profit levels.
• C)The level of risk the business faces is constant from stage to stage.
• D)Businesses spend a fixed amount of time in each stage.

---

Definitions:

Idle Cash

Cash that is not currently employed in any investment or operation, therefore not earning any return or interest.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to known amounts of cash with original maturities of three months or less.

Physical Controls

Measures and procedures implemented to safeguard assets, manage risk, and ensure the integrity of financial information, including locks, safes, and access control systems.

Natural Disasters

Natural disasters are severe and sudden events caused by environmental factors that cause damage to property, economies, and loss of life, such as earthquakes, floods, and hurricanes.