Duval Company issues four-year bonds with a $111,000 par value
on January 1, 2020, at a price of $106,880. The annual contract
rate is 8%, and interest is paid semiannually on June 30 and
December 31.
Answers
The YTM calculation assumes that the bondholder holds the bond until maturity, reinvests the coupon payments at the same YTM, and the bond issuer makes all payments as scheduled will be approximately 0.598.
To calculate the details related to Duval Company's bonds, we need to consider the bond price, par value, contract rate, and the semiannual interest payments.
Calculate the coupon (interest) payment:
Coupon payment = Par value × Annual contract rate
Coupon payment = $111,000 × 8% = $8,880
Semiannual coupon payment = $8,880 / 2 = $4,440
Determine the number of periods:
To calculate the number of periods, we need to consider the bond's maturity and the interest payment frequency.
Number of periods: 4 years × 2 = 8 periods
Calculate the yield to maturity (YTM):
To calculate the YTM, we can use financial functions or approximation methods. Here, we'll use an approximation method.
Using the approximate formula:
YTM = (Annual coupon payment / Bond price) + [(Par value - Bond price) / Number of periods]
YTM = ($8,880 / $106,880) + [($111,000 - $106,880) / 8]
Calculating the values:
YTM = 0.083 + ($4,120 / 8)
YTM = 0.083 + $515
YTM = 0.083 + 0.515 = 0.598 (approximately)
Therefore, the approximate yield to maturity (YTM) for the Duval Company bonds is approximately 0.598 or 59.8%.
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Related Questions
transferring at the differential outlay cost to to the selling division plus the forgone contribution to the company making the internal transfers is referred to as the
Answers
The term used to describe transferring at the differential outlay cost to the selling division plus the forgone contribution to the company making the internal transfers is referred to as the "opportunity cost." In other words, it refers to the cost of choosing one option over another, where the chosen option requires giving up the benefits of the unchosen option.
This opportunity cost concept is often used in decision-making processes within companies, where the cost of using internal resources to produce and transfer goods or services is weighed against the cost of sourcing them externally. By factoring in the forgone contribution and differential outlay cost, companies can better assess the true cost of internal transfers and make informed decisions that align with their strategic goals.
Transferring at the differential outlay cost to the selling division plus the forgone contribution to the company making the internal transfers is referred to as the "Transfer Pricing." This term represents the price at which divisions within a company transact with each other, involving the exchange of goods or services.
Transfer pricing aims to strike a balance between maximizing the overall company's profit and encouraging divisional autonomy and efficiency.
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Joni, a college student, has $400 worth of expenses monthly. How much should she save be financially secure?
Answers
Answer:
200 i think sorry if im wrong
Explanation:
The discount rate of factored
Accounts Receivable depends
upon which of the following?
A. The value of the Accounts Receivable.
B. The selling price of the Accounts Receivable.
C. The likelihood of repayment.
Answers
The discount rate of factored accounts receivable is a significant factor in business finances that depend upon the value and quality of a firm's accounts receivable. The discount rate of factored accounts receivable depends upon the value of the accounts receivable, the selling price of the accounts receivable, and the likelihood of repayment.
A factoring company buys accounts receivable at a discounted price and then takes responsibility for collecting payments from the customer. A factoring agreement is beneficial to both the company and the factoring company, as the former receives cash immediately and the latter receives the profits from the transaction.
The value of accounts receivable plays a significant role in determining the discount rate of factored accounts receivable. The value of accounts receivable is determined by factors such as the creditworthiness of the customer, the number of outstanding invoices, and the age of the invoice. The discount rate is lower when the accounts receivable value is higher.
The selling price of accounts receivable is another critical factor in determining the discount rate of factored accounts receivable. The selling price is the amount that the factoring company is willing to pay for the accounts receivable. The discount rate is higher when the selling price of accounts receivable is higher.
The likelihood of repayment is also a crucial factor in determining the discount rate of factored accounts receivable. The likelihood of repayment is determined by factors such as the creditworthiness of the customer, the payment history of the customer, and the terms of the invoice. The discount rate is lower when the likelihood of repayment is higher.
In conclusion, the discount rate of factored accounts receivable depends on the value of the accounts receivable, the selling price of the accounts receivable, and the likelihood of repayment. These factors should be taken into account when deciding to factor accounts receivable.
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Martin Company purchases $4,200 of merchandise on March 1, with credit terms of 3/10, n/30. lf Martin pays on March 9, what is the cost of this purchase?
$4,074
$3,780
$4,200
$3,864
Answers
It is essential to understand the dates and the related percentages. The credit terms of 3/10, n/30 mean that the buyer can get a discount of 3% if they pay the purchase price within ten days of the purchase date.
The total amount must be paid within 30 days of the purchase date. In this scenario, Martin Company purchased 4,200 worth of merchandise on March 1 with credit terms of 3/10, n/30.
If the company pays on March 9, it is within ten days of the purchase date and can get a 3% discount. Therefore, the cost of the purchase will be calculated as follows:
Purchase price = 4,200
Discount = 3% of 4,200 = 126
Amount to be paid = Purchase price - Discount = 4,200 - 126 = 4,074
the cost of the purchase when Martin Company pays on March 9 is 4,074.
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PLEASE HELP!! ASAP!!
Answers
Answer:
i can't drag them
Explanation:
What is dispatch book?
Answers
Answer:
With an eye for well-crafted essays, illuminating long-form investigative journalism, and compelling subjects given short-shrift by the big publishing houses, Dispatch Books seeks to provide readers with electronic books of conspicuous quality which offer unique perspectives found nowhere else.
ctions:
Em 7-5.
ger
ze
PROBLEM 7-7 Journalizing and Posting
Business Transactions
A partial chart of accounts for Kits & Pups Grooming follows.
General Ledger
101 Cash in Bank
301 Abe Shultz, Capital
105 Accts. Rec.-J. Alvarez 305 Abe Shultz, Withdrawals
120 Grooming Supplies 401 Boarding Revenue
130 Office Furniture
405 Grooming Revenue
140 Grooming Equipment
525 Salaries Expense
205 Accts. Pay.-Dogs & Cats Inc.
Answers
A person performs a cost-benefit analysis in order to:
A. calculate the expenses of multiple businesses competing in the
same market.
B. evaluate the possible positive and negative effects of different
economic decisions.
C. analyze economic data to reach general conclusions about a
country's economy.
D. determine the tax rates a business will pay depending on its
profits in a year.
o
Answers
Answer:
B. evaluate the possible positive and negative effects of different economic decisions.
Explanation:
Cost-benefit analysis (CBA) is used to examine and compare the cost associated with a project or task and the benefits derived from it.
Simply stated, cost-benefit analysis is a form of utilitarianism commonly used by individuals, business firms and government in the decision-making process, as all the cost incurred are determined and analyzed.
This ultimately implies that, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Cost-benefit analysis (CBA) sums the total cost associated with a project (activity) and compares this cost against the total benefits that would be generated. Thus, it helps in the decision-making process by comparing the net present value (NPV) of the cost of a particular project with the net present value (NPV) of its benefits.
Hence, a person performs a cost-benefit analysis in order to help him or her evaluate the possible positive and negative effects of different economic decisions with respect to an investment, project, activity, or programme.
The goals of risk analysis in capital budgeting include ______.multiple select question.zeroing in on the correct npvassessing the degree of financing riskdetermining the correct discount rateidentifying critical components
Answers
The goals of risk analysis in capital budgeting include zeroing in on the correct NPV, assessing the degree of financing risk, determining the correct discount rate, and identifying critical components. Option A, B, C, and D is correct.
Firstly, it aims to identify critical components in the investment project that could impact its success or failure. Secondly, it assists in assessing the degree of financing risk associated with the project, which helps in deciding the appropriate funding mix.
Thirdly, it helps in determining the correct discount rate that should be used in the Net Present Value (NPV) calculations. This is important as using the wrong discount rate can lead to incorrect investment decisions.
Lastly, the risk analysis helps in zeroing in on the correct NPV by considering all the potential risks and uncertainties associated with the project. By doing so, it helps in making informed investment decisions that are aligned with the organization's goals and objectives.
Therefore, Option A, B, C, and D is correct.
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1.what’s one category you wish fewer taxes were spent on ? why?
2.what’s one category you wish more taxes were spent on? why?
Answers
Answer:I wish fewer taxes were spent on health. Although health is an essential part of everyone's life
I feel there are more significant aspects of society that need to be addressed such as the Federal Debt or Veteran's Benefits.
I wish more taxes were spent on public maintenance at parks or any government places, mostly because the bathrooms are always filthy.
Explanation:
In how much time will the simple interest of ₱3,500 at the rate of 9% per annum be the same as the simple interest of ₱4,000 at 10.5% per annum for 4 years?
A. 5 years
B. 4.5 years
C. 5.33 years
D. 6.3 years
Answers
the time required for the simple interest of ₱3,500 at 9% per annum to be the same as the simple interest of ₱4,000 at 10.5% per annum for 4 years is approximately 5.33 years.Hence, the correct answer is C. 5.33 years
To solve this problem, we can set up an equation based on the concept of simple interest.
Let's assume the time required for the two amounts to be equal is "t" years.
The formula for simple interest is: I = P * R * T, where I is the interest, P is the principal amount, R is the interest rate, and T is the time in years.
For the first amount:
Interest1 = 3500 * 0.09 * t
For the second amount:
Interest2 = 4000 * 0.105 * 4
Since we want the two interest amounts to be equal, we can set up the equation:
3500 * 0.09 * t = 4000 * 0.105 * 4
Simplifying the equation, we get:
315t = 1680
Dividing both sides by 315:
t = 1680 / 315
t ≈ 5.33
Therefore, the time required for the simple interest of ₱3,500 at 9% per annum to be the same as the simple interest of ₱4,000 at 10.5% per annum for 4 years is approximately 5.33 years.
Hence, the correct answer is C. 5.33 years.
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What are some actions that may be taken by a nation to reduce interest rates in a country
Answers
Answer:
If needed, the Federal Reserves has the ability to lower interest rates.
Explanation:
Which of the following items are included in The Code of Professional Ethics of the American Institute of Certified Public Accountants: weigh all sides of decisions.
a. weigh all sides of decisions.
b. attending annual meetings.
c. generate innovative approaches to accounting.
d. integrity and objectivity.
Answers
Integrity and objectivity are the items are included in The Code of Professional Ethics of the American Institute of Certified Public Accountants.
What is meant by professional code of ethics?This is the term that is used to refer to the code that is used to apply to all of the people that would work in a particular organization that are meant to guide the behavior of the people in the organization and also check the ways that people would act.
Hence we can say that Integrity and objectivity are the items are included in The Code of Professional Ethics of the American Institute of Certified Public Accountants..
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in economics, the demand for a good refers to the amount of the good that people: group of answer choices will buy at various prices. need to achieve a minimum standard of living. would like to have if the good were free. will buy at alternative income levels.
Answers
the demand for a good refers to the amount of the good that people a group of people will like to have different options and different prices at which they can buy a product.
Demand for goods and services
Economists use the term demand to relate to the quantum of some good or service consumers are willing and suitable to buy at each price. Demand is grounded on requirements and wants — a consumer may be suitable to separate between a need and a want, but from an economist’s perspective they're the same thing. Demand is also grounded on capability today. However, you have no effective demand, If you can not pay.
What a buyer pays for a unit of the specific good or service is called price. The total number of units bought at that price is called the volume demanded. An increase in the price of a good or service nearly always decreases the volume demanded of that good or service. Again, a drop in price will increase the volume demanded.
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Explain how productivity, demand, and availability/supply affect the values attached to money payments.
Answers
Answer:
The law of supply and demand is an economic theory that explains how supply and demand are related to each other and how that relationship affects the price of goods and services. It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise.
There is an inverse relationship between the supply and prices of goods and services when demand is unchanged. If there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services. If there is a decrease in the supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services.
The same inverse relationship holds for the demand for goods and services. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.
Supply and demand rise and fall until an equilibrium price is reached. For example, suppose a luxury car company sets the price of its new car model at $200,000. While the initial demand may be high, due to the company hyping and creating buzz for the car, most consumers are not willing to spend $200,000 for an auto. As a result, the sales of the new model quickly fall, creating an oversupply and driving down demand for the car. In response, the company reduces the price of the car to $150,000 to balance the supply and the demand for the car to reach an equilibrium price ultimately.
The law of supply and demand is an economic theory that explains how supply and demand interact and how this influences the pricing of products and services. When supply exceeds demand for an item or service, prices fall. This is a basic economic premise. Prices tend to rise when demand exceeds supply.
When demand is constant, the supply and prices of products and services have an inverse relationship. Prices tend to decrease to a lower equilibrium price and a greater equilibrium quantity of goods and services when supply for goods and services increases while demand remains constant.
When the supply of products and services falls while demand remains constant, prices increase to a higher equilibrium price and a reduced quantity of goods and services are produced.
• The demand for products and services has the same inverse relationship. When demand rises but supply stays constant, the increased demand results in a higher equilibrium price, and vice versa.
• Supply and demand fluctuate until a price equilibrium is reached. Assume a premium vehicle manufacturer sets the price of their new model at $200,000.
• While the initial demand for the car may be great due to the company's marketing efforts, most people are unwilling to spend $200,000 on a vehicle.
• As a result, sales of the new model plummet, resulting in an oversupply and lower demand for the vehicle.
• As a result, the corporation lowers the price of the car to $150,000 in order to balance supply and demand for the vehicle and eventually establish an equilibrium price.
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horizontal and vertical m&as are typically involve product-related diversification. group of answer choices true false
Answers
False.
Horizontal and vertical mergers and acquisitions (M&As) can involve different types of diversification, including both product-related and non-product-related diversification.
Horizontal M&A refers to a merger or acquisition between companies operating in the same industry or market segment. This type of M&A is often driven by the goal of expanding market share, eliminating competition, or gaining synergies by combining similar businesses. It may or may not involve product-related diversification, as the focus is on strengthening the position within the same industry.
Vertical M&A, on the other hand, involves a merger or acquisition between companies operating at different stages of the supply chain or value chain. This type of M&A aims to improve efficiency, control costs, and gain more control over the supply chain. Vertical integration can involve both product-related and non-product-related diversification, depending on the specific industries and markets involved.
Therefore, it is incorrect to state that horizontal and vertical M&As typically involve product-related diversification, as they can encompass a range of diversification strategies depending on the specific circumstances.
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Long Text (essay)
Journal: Please respond to the following:
Why do you think entrepreneurship is important to the economy?
Answers
Great entrepreneurs have the ability to change the way we live and work, on local and national bases. If successful, their innovations may improve standards of living, and in addition to creating wealth with entrepreneurial ventures, they also create jobs and contribute to a growing economy. The importance of entrepreneurship is not to be underappreciated
Entrepreneurship is important to the economy as they act as a support system in the growth of the economy.
What is entrepreneurship?A person who has a strong interest in conducting business based on creativity and technology and who is willing to take risks in order to improve the lives of others is referred to as an entrepreneur. This is the process that is known as entrepreneurship.
The ratio of annual production to annual consumption, as well as the analysis of an individual's purchasing power, serve as the primary indicators of a nation's economic health.
By developing new goods and services, businesses encourage the creation of new jobs, which lowers the nation's unemployment rate and raises people's spending power, both of which has the net effect of speeding up economic growth.
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The clause that appears in both the promissory note and the mortgage, and allows the lender to call the balance due and payable in full upon default, is known as?
Answers
When a property is sold or transferred, a due-on-sale clause in a loan or promissory note allows lenders to demand that the remaining mortgage balance be paid in full. By prohibiting buyers from taking over a mortgage with an interest rate below the market, this clause defends lenders. Transfers to spouses, children, and trusts are some exceptions to this rule, nevertheless.
An acceleration provision defines the conditions under which the lender may seek loan repayment as well as the amount that must be paid. Another name for it is "acceleration covenant."
An "acceleration clause" in a mortgage contract allows the lender to demand that the borrower return the whole loan in the event of a failure. If the borrower fails on the loan, a "acceleration provision" in a mortgage or deed of trust enables the lender or current loan holder to seek full repayment.
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What is the best animal?
Answers
Answer: The answer is Dogs
Explanation: Dogs are the best animal because They're not just popular- historically, the symbiotic relationship between dogs and people helped both species survive.
Firms choose how to produce the goods and services they sell. In manycases, firms face atrade-off betweenusing more workers or using more machines. For example,A.many times in the past severaldecades, firms may have chosen between a production method in theUnited States that uses fewer machines and more workers and a production method in China thatuses more machines and fewer workers.B.a local service station has to choose whether to provide car repair services using more diagnosticcomputers to support their auto mechanics and fewer tools to support their auto mechanics or moretools to support their auto mechanics and fewer diagnostic computers to support their auto mechanics.C.many times in the past severaldecades, firms may have chosen between a production method in theUnited States that uses fewer workers and more machines and a production method in China thatuses more workers and fewer machine D.movie studios have to choose whether to produce animated films using more highly skilled animatorsto draw them by hand or fewer highly skilled animators and morelow-skill animators.
Answers
The correct answer is many times in the past several decades, firms may have chosen between a production method in the United States that uses fewer machines and more workers and a production method in China that uses more machines and fewer workers.
This is an example of a trade-off between labor and capital. Using more machines and fewer workers can increase efficiency and productivity but can also lead to job displacement and unemployment. Conversely, using more workers and fewer machines can create more employment opportunities but may result in lower productivity and higher costs. Is an example of a trade-off between different types of capital investment, such as diagnostic computers and tools. The optimal choice depends on the specific needs of the service station and the expertise of the auto mechanics. is similar to A but with the opposite scenario, where firms have to choose between using more machines and fewer workers in the United States or using more workers and fewer machines in China.
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krysta wants to take piano lessons. she asked a teacher how many new pieces she could expect to learn each month. the teacher gave an estimate of 3. write an equation that shows how the total number of pieces krysta would learn, y, depends on the number of months of piano lessons, x.
Answers
The required equation is y = 3x which represents the total number of pieces Krysta would learn, where x months of piano lessons.
What is the Linear equation?A linear equation is defined as an equation in which the highest power of the variable is always one.
Krysta wants to learn to play the piano. She inquired with an instructor about the number of new pieces she could anticipate studying each month. The teacher estimated three.
Let y represent the total number of pieces Krysta would learn,
And x represent depends on the number of months of piano lessons,
According to the given situation, we can write the equation would be as:
⇒ y = 3x
Therefore, the required equation is y = 3x which represents the total number of pieces Krysta would learn.
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Under the allowance method of accounting for uncollectible accounts, Group of answer choices the cash realizable value of accounts receivable is greater before an account is written off than after it is written off. Bad Debt Expense is debited when a specific account is written off as uncollectible. is debited when a specific account is written off as uncollectible. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. Allowance for Doubtful Accounts is closed each year to Income Summary.
Answers
Answer:
how are the answer choices seperated
When sending a contract to a client which mailing service would she use
Answers
Answer:
she should use the closest on
Explanation:
Utilizing your research notes, imagine you are a business manager and you must create a brief step-by-step problem-solving guide to be used by your employees. The guide should outline the steps in the problem solving process and provide a few details as to how an individual could approach each step. The guide should be no more than one page. Be sure to explain the value of collaboration and teamwork within the workplace.
Answers
Answer:
Define the problem
Analyze the affects of problem on the business
Generate list possible solutions to it.
Evaluate each alternative.
Implement a solution that is best fit
Monitor the results
Explanation:
There are six steps in problem solving. As a business manager one should understand all these steps to immediately counter a problem and progress for business success. The business manager should first define the problem and analyse the affects that it may cause to the business operations. He should then consider list of possible solutions which can solve the problem without any harm to business activities. The best possible solution to the problem should be selected and then it should be implemented to solve the problem quickly. The progress of the problem solving should be evaluated.
Which type of product advertisement can be used to sell a company’s product when two or more other companies are selling the same product?
Answers
Answer:competitive advertising
Explanation:
I’m not for sure but I think that might be the answer
Answer: competitive advertising
Explanation:
if on online course it is what was right
The table shows the terms of a fixed-rate mortgage.
Which accurately describes the terms of this mortgage? Check all that apply.
The homeowner is borrowing $360,000.
The monthly interest rate is 4 percent.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
Monthly payments must be made for 360 years.
Answers
The fixed-rate mortgage concept is used in home loans. Monthly payments for 30 years, the interest rate is 4.8%, and borrowing $200,000.
What is a fixed-rate mortgage?It is usually used in home loans with a fixed interest rate during the term of the loan. It is beneficial because once the rate of interest is fixed it is not influenced by the increase in the rate in the future.
C - Monthly payments for 30 years.
D - The interest rate is 4.8 % annually
E - borrowing $200,000.
Therefore, options C, D, and E explain the fixed-rate mortgage.
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what is a business plan
Answers
Answer:
a document setting out a business's future objectives and strategies for achieving them
Explanation:
Kogler Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Average cost per unit
Direct Materials $4.60
Direct Labor $4.20
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $8.00
Fixed selling expense $3.20
Fixed administrative expense $1.70
Sales commissions $0.70
Variable administrative expense $0.65
If the selling price is $23.00 per unit, the contribution margin per unit sold is closest to:
A: $17.45
B: $0.30
C: $14.65
D: $5.80
Answers
Erin's weekly health deduction from her check is $5.35. If his employer pays 80% of the premium, how much is her annual premium?
Answers
Answer:
Explanation:
I assume they are asking for the total premium paid per year, but I will also show just the amount she pays per year.
To figure out the total annual premium:
If the employer pays 80%, then the employee pays 20% (100%-80%).
Total Premium x .20% = 5.35
Total Premium = 5.35/.2 (20%)
Total Premium = 26.75 per week
Total annual premium is 26.75 x 52 weeks = 1,391
‘The employee only pays 20% or 5.35 per weekly paycheck. Her annual costs is 5.35 x 52 weeks=278.20
Which of these would be considered an entrepreneur?
O A. A nurse in a hospital
O B. The owner of a local coffee shop
O C. A school teacher
O D. A public transportation bus driver
Answers
Answer:
I think its B
Explanation:
Because you own your own place
The owner of a local coffee shop would be considered an entrepreneur. Hence, option B is correct.
What is meant by entrepreneur?Entrepreneurs are people who launch new businesses, bearing the bulk of the risks and getting the majority of the rewards. Starting a business is a practice of entrepreneurship.
The entrepreneur is generally regarded as an inventor who develops novel ideas for goods, services, companies, and operating procedures. Several well-known businesspeople include Bill Gates, Steve Jobs, Mark Zuckerberg, Pierre Omidyar, Arianna Huffington, and Caterina Fake.
Some kinds of entrepreneur are -
Small Businesses Entrepreneurship.
Scalable Start-up Entrepreneurship.
Social Entrepreneurship.
Large Company Entrepreneurship.
Thus, option B is correct.
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