Q4- ENTREP

Which of the following is considered a salient feature of a successful entrepreneur?

• Relies solely on luck to succeed
  

• Takes calculated risks and seeks opportunities
  

• Avoids responsibility and delegation
  

• Prefers routine tasks with no innovation

Which quality helps entrepreneurs generate new ideas and improve existing products?

• Innovation

• 
  Laziness
  

• Conservatism

• Overconfidence

What does a profitability ratio measure?

• A company’s ability to pay its short-term debts
  

• A company’s efficiency in generating profit from its resources
  

• A company’s market share growth
  

• A company’s total sales volume

Which of the following is not a profitability ratio?

• Return on Investment

• Net Profit Margin
  

• Gross Profit Margin
  

• Current Ratio

A high net profit margin indicates that a company:

• Is spending too much on operations
  

• Is efficient at converting sales into profit
  

• Has low total sales
  

• Has high debt

Return on Investment shows:

• How much profit a company earns from shareholders’ investments
  

• How much debt a company has
  

• The liquidity of the company
  

• The company’s total sales

Which of the following would increase a company’s net profit margin?

• Increasing expenses without increasing sales
  

• Reducing cost of production while maintaining sales
  

• Increasing debt interest payments
  

• Reducing sales revenue

Which liquidity ratio measures a company's ability to pay its short-term obligations using its current assets?

• Debt Ratio
  

• Current Ratio
  

• Profit Margin
  

• Return on Assets

What is the formula for the Current Ratio?

• Current Assets ÷ Total Assets
  

• Current Assets ÷ Current Liabilities

• Total Assets ÷ Total Liabilities
  

• Net Income ÷ Current Assets

Which of the following is considered a current asset?

• Land
  

• Building
  

• Cash
  

• Machinery