Keiko Prepares a Document That Outlines Her Plan to Open

question 23

Multiple Choice

Keiko prepares a document that outlines her plan to open a new essential oils company, including descriptions of the product, the market, her strategies, and the future direction she envisions for the company. This document is a(n)

• A)entrepreneurial orientation.
• B)opportunity analysis.
• C)business incubator.
• D)initial public offering.
• E)business plan.

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Definitions:

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.