Entrepreneurs Start Their Own Firms for All of the Following

question 120

Multiple Choice

Entrepreneurs start their own firms for all of the following reasons except

• A) the challenge
• B) the profit potential
• C) the enormous satisfaction
• D) the great idea
• E) the hope that lies ahead.

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Definitions:

Off-Balance-Sheet Financing

Financing not recorded on the company's balance sheet that may involve leases or the creation of separate entities.

Substantial Down Payment

A large initial payment made when purchasing an item or property, reducing the amount of the loan or mortgage required.

Risk of Obsolescence

The risk that a product, service, or technology will become outdated or no longer useful, often due to advancements in technology.

Debt to Stockholders' Equity Ratio

A financial ratio that measures the proportion of a company's total debt to its shareholders' equity, indicating the financial leverage of the company.