In Exchange for a Small Share of Ownership,KMC Group Makes

question 52

Multiple Choice

In exchange for a small share of ownership,KMC Group makes a small investment in TechPro,a new,independent software firm.KMC Group provides support to TechPro during its early stages by helping the founders refine their ideas,hire suitable employees and train them,establish connections with industry insiders,and deal with legal issues.KMC Group is most likely to be a(n) ________.

• A) advisory board
• B) mentor
• C) business incubator
• D) seed center
• E) microlender

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Definitions:

Adjustment Interest

Adjustment Interest involves the modification of interest income or expense to correct or update the recorded interest in financial records.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense in the income statement.

Discount Period

A designated time frame during which a discount is applicable on a payment or transaction.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecorded income or expenses for that period.