Which Statement About Contingencies Is Correct

question 83

Multiple Choice

Which statement about contingencies is correct?

• A)It involves only potential economic outflows of resources.
• B)It is a possible condition that depends upon the outcome of a future event.
• C)It involves uncertainty about either the timing or amount of payment.
• D)It is an existing condition that depends upon the outcome of a future event.

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Definitions:

Growth Capital

Capital invested in a company to accelerate its growth without significantly changing its control structure, usually in the form of equity investment.

Equity Preservation

Strategies or measures taken to maintain or protect the value of an investor's ownership stake in a company.

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity, or ownership stake.

Potential Venture

A business idea or project that has the possibility of being developed into a successful commercial enterprise.