A Chiffon Cake Is a Cake

question 31

Multiple Choice

A chiffon cake is a cake

• A) made by combining the characteristics of shortened and unshortened cakes.
• B) made by adding egg whites whipped separately and scalded milk.
• C) made without added fat or whipped egg whites.
• D) unbaked until all the ingredients have been individually pre-cooked.
• E) made with a "sourdough" type cake base.

Recognize the importance of equitable contributions in equity allocation among founders and investors.

Understand the concept and value of sweat equity in starting a business.

Recognize bootstrapping as a financial strategy for starting a business with minimal resources.

Identify crowdsourcing as a method for gathering information, ideas, or services from a large group of people.

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Definitions:

Required Return

The least percentage of profit or gain expected by an investor for taking the risk to invest in a specific asset or project.

Annual Dividend

The annual sum of dividends disbursed by a corporation to its stockholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.