The Rate of Return a Company Must Earn to Meet

question 245

Multiple Choice

The rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders is called

• A) opportunity rate.
• B) retained earning.
• C) cost of capital.
• D) acquisition cost.

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Definitions:

Privatizing

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Anthropologists

Scientists who study human societies, cultures, and their development.

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to publicly display economic power, status, or wealth.