18 Questions
Which type of investment would Apple computers be considered today?
low risk investment with high annual expected returns
What are the two axes of a risk matrix?
Whether the customer demand and market around a proposed idea are real; whether the product can actually be built as expected
What type of economy does Dropbox exhibit?
Economies of scale with increasing returns
What is a characteristic of a flow-through entity?
Taxation of corporate profits
What type of business structure is characterized by perpetual continuity?
Regular C-Corporation
What happens to creditors if a corporation fails and proper formalities have been followed?
They have a limited claim on the company's assets
What is the definition of an outcome resulting from an action being certain?
When it will definitely happen
Which type of uncertainty is not listed in the text?
Market
What is a characteristic of a good entrepreneur in terms of risk-taking?
They take calculated risks
Which of the following tasks is the most uncertain?
Begin independent research on self-driving cars
What is a potential reason why a VR company struggled to stay afloat?
The hype around VR died and investors no longer saw the vertical as promising
What is the definition of regret in the context of entrepreneurship?
The amount of gain that a person expects
What is a unique strategy employed by Tencent that is not commonly seen among major Western tech companies?
Refusal to cooperate with the Chinese government
What leads to an increased downside in a venture?
Increased hazard
What type of case is an entrepreneur's assumption that their revenue growth will continue at the same rate?
Optimistic case
What does 'pro forma' mean in the context of financial planning?
In advance of actual data
What is true about the relationship between book value and market value?
Market value factors in the company's growth prospects
What is typically not a category of an operating expense?
Investment returns
Test your knowledge on risk and return with this quiz covering topics like certainty of outcomes, types of losses, entrepreneurial risk-taking, and uncertainty in different tasks.
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