Which of the Following Is True of Entrepreneurial Ventures

question 33

Multiple Choice

Which of the following is true of entrepreneurial ventures?

• A) Companies offering mundane products cannot hope to gain competitive advantage.
• B) For start-ups, failure is an exception rather than the rule.
• C) Successful companies do not always require a cutting-edge technology or an exciting new product.
• D) Acquiring venture capital is essential to the success of all start-up businesses.
• E) The odds of survival of an entrepreneurial venture worsen if it grows to at least 10 or 20 people.

---

Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life; it is used in calculating depreciation expense.

Depreciation

The orderly apportionment of a physical asset's cost throughout its useful life.

Useful Life

The estimated period an asset is expected to be used before it is deemed no longer useful for operations.

Units-Of-Activity

A depreciation method that allocates cost based on the actual usage, work performed, or units produced by an asset.