Which of the Following Statements About Entrepreneurial Teams Is False

question 21

Multiple Choice

Which of the following statements about entrepreneurial teams is false?

• A)Most teams are nonfamily related
• B)The majority of new businesses have a team of two or more co-owners
• C)The trend is toward even more businesses being developed by teams of entrepreneurs
• D)When family members start a business,they start with already knowing and trusting each other

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Definitions:

Marginal Product

The incremental increase in output resulting from the use of one additional unit of a resource, while keeping other resources constant.

Variable Resource

A factor of production whose quantity can easily be changed in the short term to increase or decrease production levels.

Fixed Resource

An asset or resource in production that cannot be easily increased or decreased in the short term, such as land or machinery.

Diminishing Returns

The principle that says as more of a variable input is added to a fixed input, the incremental gain in output will eventually decrease.