Even Though Your Business May Not Currently Be Profitable,investors Will

question 25

Multiple Choice

Even though your business may not currently be profitable,investors will want to know how many customers you have,primarily because it will show the potential ______.

• A)for customer satisfaction
• B)to scale the business
• C)marketability
• D)revenue from that base

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Definitions:

Stock Split

A corporate action to increase the number of shares, reducing the price per share correspondingly without changing the market capitalization.

Par Value

A nominal value given to a security or stock specified by the issuing company, which may not necessarily reflect its actual market value.

Dividends Payable

A liability account that records the amount of dividends that a company has declared but not yet paid to its shareholders.

Cash

denotes money in the form of currency, including banknotes and coins, which is used to conduct transactions.