An investor who invests money into your business in exchange for equity receives ________.
A. a monthly dividend out of the business profits
B. liability for any debt the business incurs
C. a share of ownership of the business
D. annual dividends
Answer: C
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Match the following financial statement ratios with their definition. 1. Working capital _____ 2. Current ratio _______ 3. Profit margin ______ 4. Return on assets______ 5. Debt to equity ratio________ 6. Return on equity_______ 7. Asset turnover_________ a. A measure of profitability that shows the proportion of a company's assets that is financed by creditors and the proportion financed by
owners b. A measure of liquidity that shows the net current assets on hand to continue business operations c. A measure of profitability that relates the amount earned by a business to the stockholders' investment in the business d. A measure of profitability that shows the percentage of each sales dollar that results in net income e. A measure of liquidity; current assets divided by current liabilities f. A measure of profitability that shows how efficiently a company uses its assets to produce income g. A measure of how efficiently assets are used to produce sales Fill in the blank(s) with correct word
When executives from competing firms meet to decide which of them will submit the lowest bid on a contract, they are indulging in _____
a. price discrimination b. price fixing c. bait pricing d. penetration pricing
Accounts in domestic banks that are maintained and paid in a foreign currency are generally known as ________
A. checking accounts B. asset accounts C. Eurocurrency deposits D. recurring deposits
Following the experience curve concept, the initial price of a new product should be set rather low; as a matter of fact, it may be set below cost. Taking into account the popularity of this thesis, discuss the relevance of the skimming strategy.
What will be an ideal response?