Question

Entrepreneurs need to know the basics of accounting even if they hire a professional because

Answer 1

Answer: C

Explanation:

An entrepeneur needs to understand the information that the accountant reports periodically, in order to assure how the business is doing.

Answer 2

The correct answer is C. The entrepreneur will need to understand the financial reports.

Explanation:

In business, the entrepreneur is the person that creates a business and therefore the agent that is responsible for it. Due to the multiple responsibilities and tasks of a business, in most cases, the entrepreneur hires professionals to help him with management. This includes accountings that involve understanding and registering in reports financial transactions such as income, expenses, etc.

In this case, the entrepreneur must have a basic knowledge of accounting because only in this way, he will understand the financial reports and financial implications of the business and act according to this. For example, if an entrepreneur does not know the basics of accounting, he/she will not recognize if the business is bankrupting or why this is happening.