To Start a Business, the Owners Need

question 59

Multiple Choice

To start a business, the owners need

• A) a market where there is demand for their product.
• B) a clear vision of what products or services they want to produce.
• C) the know-how to successfully market their product.
• D) all of the above.

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Definitions:

After Taxes

The net amount remaining following the deduction of all applicable taxes, often used to assess the true profitability of a business activity or investment after federal, state, and other taxes have been considered.

Beta Coefficient

A gauge for assessing the risk or fluctuation level of a security or portfolio in relation to the entire market.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.

Market Risk Premium

The surplus earnings expected by investors for possessing a market portfolio with risks as opposed to secure, riskless assets.