If a Corporation Issues a Security That Gives a Right

question 64

Multiple Choice

If a corporation issues a security that gives a right to share in its profits, if any, what is that security called?

• A)a share
• B)a bond
• C)a debenture
• D)capital
• E)a dividend

---

Definitions:

Net Income

The amount of profit left over after all expenses and taxes have been subtracted from total revenue.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the profit from an investment divided by the cost of the investment.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales revenue.

Profit Margin

A financial metric that measures the amount of net income generated as a percentage of revenues, indicating the efficiency of a company in turning sales into profits.