For Each Definition, Select the Term That Best Fits

question 92

Multiple Choice

For each definition, select the term that best fits.
-A venture operated by a founding entrepreneur

• A)cousin consortium
• B)family
• C)family business
• D)family council
• E)family creed
• F)family of attachment
• G)family of origin
• H)family retreat
• I)organizational culture
• J)owner-managed business
• K)sibling partnership
• L)socioemotional wealth
• M)transfer of ownership

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Definitions:

Discount Rate

This is the interest rate used in DCF evaluations to establish the current value of expected future cash inflows.

After-tax Cash Inflows

The amount of money a company receives from its operations after all tax obligations have been paid.

Required Return

The minimum rate of profit expected by investors for assuming the risk of investing in a stock or other types of securities.

Net Present Value

A calculation method used in finance to determine the value of a series of future cash flows in today's dollars, taking into account the time value of money.