Although there are many types of risk classes, basic types of risk for a business can be classified as: credit risk (default risk),  market risk, political risk and operational risk.  Various risks that can arise from a company’s ordinary business are called operational risks.

Financial markets can be classified as:
• Money markets: Markets where short-term securities like commercial paper and treasury bills are traded.
• Capital markets: Markets where long-term securities like bonds and stocks are traded.
They can also be classified as:
• Primary markets: Markets in which securities are offered for the first time.
• Secondary markets: Markets in which currently outstanding securities are traded.

The combination of internal funds and external funds creates the financing structure, in other words the capital structure of the company.

Firms may issue shares of stock to raise capital as a form of equity financing. Stocks represent ownership interest in the business and its assets. Companies raise capital by issuing shares of stock. Financing decisions involve debt or equity financing. Bond issuances provide debt financing whereas issuing shares of stock provides equity financing.

Operating profit also known as earnings before interest and tax (EBIT) is a part of a company’s income statement. The operating profit margin is an important indicator of the company’s earning power from its current operations. Operating profit is any income directly related to the operations of the business. The operating profit margin (OPM) is a measure of overall operating efficiency and incorporates all of the expenses associated with ordinary business activities.

Innovation. Small business ?exibility also tends to favor innovations in terms of new products or introducing new business processes or methods. Te SBA reported that among high-patenting firms (15 or more patents in 4 years), small businesses had 16 times more patents per employee than large patenting firms in the U.S.39 During the past several years, small companies and individuals in the computer technology sector have made a very large impact not only on businesses but on larger societies as well, for
example, the invention of personal computers, the World Wide Web (WWW), Google search and Facebook to name a few.

Managers are the primary users of "Managerial Accounting"

Reselling services is unusual

A journal is the chronological record of transactions A ledger is the book holding all the accounts with their balances. Posting is the process of copying from the journal to the ledger

Cash flows statement is one of the outputs of the accounting system process

The criteria for segmentation may differ from one company to another. One of the most convenient methods is geographic segmentation.

A more sophisticated yet still simple criterion for segmentation is demographic (and in the case of B2B markets, firmographics).

A more useful approach is categorizing consumers on the basis of how they purchase and use a particular product or brand.

The most useful approach in segmenting consumers is on the basis of psychographic information.

An ideal segmentation approach combines different strategies (including demographics and psychographics) to arrive at groups with the highest level of differentiation.

Some of goods can be resold, some aspects of their quality are measurable, selling is distinct from production of goods, location of a facility is important for cost, it is often easy to automate production of goods.

A ledger is the book holding all the accounts with their balances.

The return on assets ratio measures the overall profitability of assets in terms of the income earned on each dollar invested in assets. The correct answer is C.

An extranet is a private network that uses Internet technology and the public telecommunication system to securely share part of a business’s information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company’s intranet that is extended to users outside the company. Some extranets can not be accessed by the general public.

This transaction increases both the assets (in this case, cash) and the owner’s equity (capital) of the business by 10.000 dollars.