An entrepreneur, generally, is someone who starts and runs a business. While an entrepreneur may do odd jobs here and there for other people/companies, he/she is generally self-employed and building a personal brand of some kind.
The examples of passive income are-
- portfolio income, including interest, dividends, annuities, and royalties
- income from rental real estate earned by a no real estate professional
- state and local refunds
Explanation:
Passive income is the incomes generated without the active participation of the person. In general, passive involves an upfront investment in the beginning after which a regular income source is generated. This constitutes mostly subsidiary activities. E.g. income generated from the rental properties, dividends, royalties and portfolio investment is considered to be passive in sense.
In the above examples-
- Interest, dividends, annuities, and royalties- It is a source of passive income since direct involvement of person is not required and involves initial investment in buying of stocks beyond which person enjoys annuities and dividends.
- Income from rental real estate earned by a no real estate professional- This is also an example of passive income. Once the investment is done, personal presence is not required for income generation. Hence it qualifies for passive income.
- winnings from gambling- it is not a source of passive income. A person presence is utmost (then only he can involve in gambling activities) for revenue generation.
- state and local refunds- This is a passive income since refunds are done by the concerned bodies and personal involvement is not needed.
The answer is A factory produces blue and green widgets at equal
Answer:
Divisional Product Structure
Explanation:
Divisional product structure functions in the manner that the business is centralized and then the resources are divided into various products depending on the needs of the product.
As the company which aims to produce more than one product and has diverse products, it can centralize the basic functions and then put specific consideration on the individual diverse products.
With this structure the organization can perform in each product segment with the increasing quality and generating greater revenue.
Answer:
Yes, small changes in the assumptions pertaining to the estimation of the terminal value have a significant impact on the calculation of the total value of the target firm.
Explanation:
Terminal value is dependent on the input used in the valuation and the two inputs which heavily influence the value of enterprise are future growth projection and discount rate.
Accurately projecting the future cash flow can be a doubting task and can result in a degree of uncertainty built into estimate.
Small changes in the assumptions pertaining to the estimation of the terminal value have a significant impact on the calculation of the total value of the target firm. This is because, it is these small changes in the stable growth rate can change the terminal value significantly and the effect gets larger as the growth rate approaches the rate used in the estimation of the total value of the target firm.