Discuss the Act–Learn–Build model as it relates to risk-takers.
What will be an ideal response?
Risk is very personal and relative. Things always seem more risky from the outside looking in because we really don’t know what calculations were made to take the next step. In fact, most entrepreneurs are very calculated risk-takers and gauge what they are willing to lose with every step taken. They practice a cycle of act–learn–build that encourages taking small actions in order to learn and build that learning into the next action (see Figure 1.1). Entrepreneurship should never be a zero-sum game—never an all-or-nothing decision. It’s not about ascending the summit without ropes or oxygen. It just looks that way from the outside.
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The offer rate
a. is the price at which the bank is willing to sell a unit of foreign currency. b. is the price that the bank is willing to pay for a unit of foreign currency. c. is synonymous with the spread rate. d. is synonymous with the exchange rate.
U.S. GAAP classifies all of the following as financing activities on the statement of cash flows except
a. cash inflows from issuance of bonds. b. cash inflows from selling capital stock of the entity. c. cash outflows to lender for interest. d. cash outflows to repurchase capital stock of the entity. e. cash outflows to repurchase bonds of the entity.
Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product
Indicate whether the statement is true or false
Which of the following elements affects the chance of making a Type II error?
a. The sample size. c. The chance of making a Type I error. b. The mean of the process. d. All of these choices are true.