Matt plans to open a convenience store. The startup cost is approximately $10,000. Since Matt has only $2,500 with him, he decides to invite two of his friends-Brett and Brian-to join him in this venture. In this scenario, who should be in charge of writing the business plan?
A. Matt alone, since it was primarily his business plan
B. Whoever has paid the biggest share of the startup cost
C. Only Brett and Brian, since they are contributing 75 percent of the initial investment
D. Matt, Brett, and Brian, since it is always a team effort
Answer: D
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Which of the following is an inventory valuation method?
a. First-in, first-out b. Average-cost c. Lower-of-cost-or-market d. Perpetual
All of the following are needed for the computation of depreciation except
a. residual value. b. estimated useful life. c. cost. d. current market value.
Both U.S. GAAP and IFRS require firms to write down inventories when their replacement cost, or market value, declines below acquisition cost
Indicate whether the statement is true or false
Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel
A. may quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries where ethical standards vary considerably from country to country. B. end up allowing each company employee to determine what set of ethical standards to observe. C. have no fair way to judge the ethical correctness of the conduct of company personnel. D. base their standards of what is ethical and what is unethical in the company's home market. E. have a one-size-fits-all set of ethical standards.