Which Three of the Following Are Arguments Against Joining a Stock

question 30

Multiple Choice

Which three of the following are arguments against joining a stock exchange.

• A) There is an excessive focus on return on capital.
• B) There is increased customer recognition.
• C) The City does not understand entrepreneurs.
• D) Dealing with 'City' folk is time consuming.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time.

Variable Costs

Expenses which are dependent on the volume of activity within a business.

Profit-Volume Chart

A graphical representation that shows the relationship between a company's profits and its volume of sales, illustrating the break-even point and profit levels at different sales volumes.

Cost-Volume-Profit Chart

A chart that graphically shows sales, costs, and the related profit or loss for various levels of units sold. Also called a break-even chart.