Before Its IPO,Snap,the Parent Firm of Snapchat,was an Example of a Private

question 70

Multiple Choice

Before its IPO,Snap,the parent firm of Snapchat,was an example of a private firm.As a private firm,Snap was

• A)not subject to government regulations and taxation.
• B)run by stockholders and a board of directors.
• C)run by its founders,Evan Spiegel and Bobby Murphy.
• D)not legally allowed to raise funds through venture capital firms.

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Definitions:

Ownership Percentage

The fraction or percentage of a company that is owned by an individual or entity, typically expressed as a share of the company's total equity.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash within a year.

Dutch Auction

A method of auction in which the price of the item is reduced until it meets a bid.