When a Small Business Is Declining, the First Step Is

question 8

True/False

When a small business is declining, the first step is to retrench.

---

Definitions:

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.

Yield Curve

The curve that results when the yield to maturity is plotted on the y-axis with term to maturity on the x-axis.

Junk Bonds

High-risk, high-yield bonds issued to finance leveraged buyouts, mergers, or troubled companies.

High-Risk

Describes an investment or venture that carries a high level of uncertainty and the potential for significant loss.