_____ Produce Fundamental Changes That Can Transform a Company or Even

question 49

Multiple Choice

_____ produce fundamental changes that can transform a company or even revolutionize an industry; _____ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.

• A) Technological breakthroughs; product-market breakthroughs
• B) New technologies; new paradigms
• C) Incremental innovations; radical innovations
• D) Radical innovations; incremental innovations

Comprehend the processes involved in the incorporation and organization of corporations.

Recognize the duties and responsibilities of corporate directors and officers.

Understand the mechanisms through which corporations distribute income to shareholders.

Differentiate between types of corporations based on structure, purpose, and ownership.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Flotation Costs

The expenses incurred by a company in issuing new securities, including underwriting fees, legal fees, and registration fees.

New Equity

Funds that a company raises through the sale of new shares to investors, often used to finance business activities without incurring debt.

Growth Rate

The percentage change of a particular economic or financial indicator within a specific time period, indicating the rate at which a company, economy, or value is expanding or contracting.