Identify and discuss the five factors entrepreneurs should consider when screening new business ideas.
What will be an ideal response?
1. Strength of the business idea: The idea should meed a market need while offering products or services customers favor and find easy to use. No fatal flaws should be present.
2. Targeted market and customers: The market should be large enough to sustain the business, growing rapidly, include customers with purchasing power, and be reachable through clear channels of promotion.
3. Industry and competitive advantage: The industry should have few competitors, low barriers to entry, high operating margins, and high growth.
4. Capability of founder(s): The founders should have industry-related experience, skills, and networks along with a passion and fit with the new business.
5. Capital requirements and venture performance: The new venture should require little capital to launch, have high anticipated profits, and low levels of liability and other risks. Other similar enterprises should perform well in this industry.
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Which of the following does NOT constitute a federal source of information?
a. County clerk b. CIA c. Secret service d. FBI
What name is given to the process whereby a third party is appointed to evaluate the evidence and make a decision which is used to resolve an industrial dispute:
a. conciliation b . mediation c. arbitration d. negotiation
A person who takes a negotiable instrument for value, in good faith, and without notice that it is defective or overdue is referred to as a(n) ________
A) holder B) holder in due course C) unqualified indorser D) assignee
Brew Corporation's most recent comparative balance sheet and income statement appear below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets Current assets: Cash and cash equivalents$47 $39 Accounts receivable 38 35 Inventory 68 61 Total current assets 153 135 Property, plant, and equipment 600 500 Less accumulated depreciation 397 332 Net property, plant, and equipment 203 168 Total assets$356 $303 Liabilities and stockholders' equity: Current liabilities: Accounts payable$59 $63 Total current liabilities 59 63 Bonds payable 219 260 Total liabilities 278 323 Stockholders' equity: Common stock 71 70 Retained earnings 7 (90)Total stockholders'
equity 78 (20)Total liabilities and stockholders' equity$356 $303?Income Statement?Sales$975Cost of goods sold 619Gross margin 356Selling and administrative expense 165Net operating income191Income taxes 57Net income $134Cash dividends were $37. The company did not retire or sell any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was: A. $191 B. $51 C. $185 D. $83