Which of the Following Is an Example of an Activity

question 172

Multiple Choice

Which of the following is an example of an activity undertaken by an entrepreneur?

• A)designing your landscaping for your new home
• B)holding a position as the president of a liberal arts college
• C)running for the president of the United States
• D)starting your own pet sitting business

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Definitions:

Required Rate of Return

The required rate of return is the minimum annual percentage return an investor expects to achieve from an investment, considering the risk associated with it.

Payback Rule

An investment appraisal technique that calculates the time required to recoup the cost of an investment, focusing on cash flow rather than profitability.

Pre-Specified Number

A value or quantity that is defined or agreed upon before it is used or applied.

Calculated Payback Period

The duration required for an investment to produce income or cash flow equal to the investment's initial cost.