As a Result of Recent Downsizing at His Firm, Dominic

question 45

Multiple Choice

As a result of recent downsizing at his firm, Dominic lost his job as an IT manager for a large telecommunications company. A true, self-confirmed computer nerd, Dominic knew that several of his past contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that

• A) starting your own business can quickly provide security and profits.
• B) people always tend to hire people they know from past associations.
• C) the service sector is not an area of significant growth.
• D) successful big businesses often create profitable opportunities for small businesses.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Premium

An amount paid that is above the standard or nominal cost, often for insurance, superior goods, or to designate a higher level of service or coverage.

Coupon Rate

The interest rate stated on a bond when issued, which represents the amount of interest paid to bondholders annually.

Interest Rates

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.