Which Three Statements Link to Explain the Meaning of the Term

question 17

Multiple Choice

Which three statements link to explain the meaning of the term 'financing gap'?

• A) Small companies tend to rely on retained earnings and bank loans.
• B) Rapidly growing medium sized companies can easily access stock market funds.
• C) Only mature companies can generally access debt or equity capital through capital markets.
• D) The stock market is able to adjust its operations to suit a wide range of companies seeking funds.

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Definitions:

Recognize Income

The process of reporting income when it is earned, according to accounting principles, regardless of when it is received.

Unemployment Compensation

Financial benefits provided to individuals who have lost their job through no fault of their own, as a means to temporarily assist them while they seek new employment.

Taxable

Relates to income, assets, or transactions that are subject to tax by governmental authorities.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.