Suppose you come up with a wonderful new invention, and after borrowing as much as you can from a bank, you believe that additional capital is needed to make the invention marketable. Your small new company would be most likely to find additional capital from
A. a venture capital firm.
B. an initial public offering.
C. issuing bonds.
D. borrowing from a different bank.
Answer: A
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A profit-maximizing firm hires labor until
a. the price of output equals the price of labor. b. the price of output equals the marginal product of labor c. the real wage equals the marginal product of labor. d. the real wage equals the marginal product of labor multiplied by the price of output.
Consumption spending is said to make up about ______ to _______ of most countries spending.
A. 3/4, 7/8 B. 1/2, 2/3 C. 2/3, 3/4 D. 1/3, 1/2
A transfer payment is
a. income that is received but not earned b. income that is earned but not received c. included in GDP to account for the spending on capital depreciation d. part of personal disposable income but not personal income e. always equal to the taxes that the government collects
An increase in the price of a good will cause total revenue to fall if price elasticity of demand is:
A. unitary elastic. B. inelastic. C. perfectly elastic. D. elastic.