When considering innovations and entrepreneurship, it can be said that Multiple Choice a command economy creates greater incentives for innovation and entrepreneurship than a market economy. innovations in production and business processes lead to an increase in the productivity of labor and capital. if a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity. a high level of entrepreneurial activity leads to a low level of innovation. strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.