SCORE Refers to

question 51

Multiple Choice

SCORE refers to

• A)the grade assigned to a small firm by the SBA.
• B)the management knowledge possessed by an entrepreneur.
• C)a group of retired executives who act as consultants to small firms.
• D)an alliance of small firms for the purpose of bidding on government contracts.

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Definitions:

Component Costs of Capital

The individual expenses associated with the different sources of capital, such as the cost of equity, debt, and preferred stock.

Market-Determined Variables

Economic factors such as prices, wages, and interest rates that are decided by the forces of supply and demand in a free market.

Required Returns

The minimum profit or yield that investors demand for investing in an asset, considering the risk involved.

Risk Premium

The additional return an investor requires to invest in an asset over a risk-free rate, compensating for the risk of the investment.