Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

When are business risks generally greatest for a business?

During the initial start-up phase

After achieving stable profitability

During periods of low competition

When the business is operating at full capacity

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Verified step by step guidance

Understand the concept of business risk: Business risk refers to the potential for a company to experience lower profits or even losses due to uncertainties in its operations or external environment.

Analyze the options provided: Each option represents a different phase or condition of a business's lifecycle or environment. Consider the characteristics of each phase and how they relate to risk.

Evaluate the initial start-up phase: During this phase, businesses often face high uncertainty, limited resources, unproven business models, and intense pressure to establish a market presence. These factors typically increase risk.

Assess the other options: After achieving stable profitability, risks are generally lower because the business has established operations and a steady revenue stream. During periods of low competition, risks are reduced as there is less pressure from competitors. When operating at full capacity, risks may arise from operational strain, but they are not as significant as during the start-up phase.

Conclude that the greatest business risks are generally during the initial start-up phase, as this is when the business faces the most uncertainty and challenges in establishing itself.