A ________ Is a Group of Organizations, Each of Which

question 6

Multiple Choice

A ________ is a group of organizations, each of which owns shares in the other organizations in the group, and all of which work together to further the group's interests. It is a Japanese system.

• A) hoteru
• B) byouin
• C) hikouki
• D) keiretsu

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Definitions:

Cost of Equity

The rate of return that a company is required to pay out to its equity investors, reflecting the compensation for the risk they undertake.

SML Approach

Security Market Line (SML) approach is a graphical representation in the Capital Asset Pricing Model (CAPM) that shows the expected return of an asset or portfolio at various levels of systemic risk.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionally weighted.

Perpetuity

An annuity in which the cash flows continue forever.