Which of the Following Statements Is True About Businesses and Profits

question 32

Multiple Choice

Which of the following statements is true about businesses and profits?

• A)Profit making is a business activity that seldom requires risk taking.
• B)Businesses do not have the right to use their profits the way they choose.
• C)Profit-making businesses often weaken the economy of a country.
• D)Earning profits contributes to society by providing employment.
• E)Ignoring the interests of stakeholders is the best way for a business to be profitable.

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Definitions:

Start-up Companies

Newly established businesses typically characterized by high growth potential and innovative business models or products.

Hedge Funds

Investment funds that employ diverse strategies to earn active return, or alpha, for their investors, often engaging in leveraged, speculative investment practices.

Mutual Funds

Financial investment strategies funded by contributors, trading in diversified assets and overseen by professional administrators.

Institutional Investors

Organizations or entities, such as pension funds, insurance companies, and endowments, that invest large amounts of money into securities and real estate.