Entrepreneurship is the act of starting own business, this includes risk, most of the times financial loans are obtained from banks and secured against assets of the business.
<h3 /><h3>What is Small Business?</h3>
A small business is the business which is small in nature, mostly this includes sole traders, the capital is injected by the owner there is no or lower long term liabilities, fewer employees and lower revenue.
Small businesses should be encouraged as these businesses provide profits to individuals which will also contribute to the economy, and these small businesses will provide employment opportunities to young individuals. They fail because of high risk.
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Answer:
The correct answer is C: Both are true
Explanation:
Duration is simply defined as the average lifetime of a debt security stream of payment and the duration of a portfolio is the weighted average of the duration of the individual securities, with the weights reflecting the proportion of the portfolio invested in each.
Answer:
Informal communication network
Explanation:
Grapevine within an organisation can lead to various problems, such as confusions and lack of communication. Grapevine are the rumours which are usually circulated by individuals, it can be stopped by proper communication with the employees. Another name of the grapevine is informal communication which allows employees to speak directly without proper channels of the formal communication network.
Answer:
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
Explanation:
We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944
If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.
First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)
Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)
Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)
Fourth payment future value = 3000*1.1=3300
Add them all up = 15315
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
