If a Company Is Focusing on a Portfolio of High

question 30

Multiple Choice

If a company is focusing on a portfolio of high growth, high risk investments what is likely to be its capital structure?

• A) High debt, low equity
• B) Debt only
• C) High equity, low debt
• D) Venture capital

---

Definitions:

Taxable Income

The amount of a person's or organization's income used to determine how much tax is owed to the government.

For AGI Deduction

refers to deductions that are made from gross income to determine the adjusted gross income on a tax return.

Early Withdrawal Penalty

A fee imposed for withdrawing funds from certain retirement accounts or investments before a specified age or period.

1040A

A simplified version of the IRS Form 1040 used for personal income tax filing, now obsolete and replaced with the redesigned Form 1040.