Question

as a rule of thumb, how often should an entrepreneur reevaluate her compensation package?

every month
every 6 months
every 12 months
every 18 months

question 26 (3.333333333 points)
to determine depreciation, you simply divide the cost of the asset by its

value to the company.
current market value.
useful life.
sentimental value.

question 27 (3.333333333 points)
a budget should include a balance sheet and a(n)

inventory list.
income statement.
5-year projection.
short-term marketing assessment.

Explanation:

Reevaluation frequency of owner compensation

An entrepreneur should reevaluate her compensation package annually (every 12 months) to align with business performance, tax planning, and market conditions.

Straight-line depreciation calculation

To calculate straight-line depreciation, the depreciable cost of an asset (cost minus salvage value) is divided by its estimated useful life.

Essential components of a business budget

A comprehensive business budget or financial plan must include key financial statements, specifically a balance sheet and an income statement (or profit and loss statement).

Answer:

Question 1

• Every month
• Every 6 months
• Every 12 months (Correct answer)
• Every 18 months

Question 2

• value to the company.
• current market value.
• useful life. (Correct answer)
• sentimental value.

Question 3

• inventory list.
• income statement. (Correct answer)
• 5-year projection.
• short-term marketing assessment.