Any Person or Entity That Purchases One or More Shares

question 39

Multiple Choice

Any person or entity that purchases one or more shares of corporate stock, giving rise to an ownership interest in the corporation whose stock was purchased, is called a(n)

• A) officer.
• B) director.
• C) employee.
• D) shareholder.

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Definitions:

Income

Money received, especially on a regular basis, for work or through investments.

Spending

The act of disbursing money or resources for various purposes, including procurement, operations, and investments.

IRR

Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.