Which of the Following Are Typical Characteristics of Small Cap

question 77

Multiple Choice

Which of the following are typical characteristics of small cap stocks?
I. strong balance sheets
II. market cap less than $2 billion
III. potential for high returns along with high risk
IV. potentially dramatic changes in their earnings

• A) III and IV only
• B) II and III only
• C) I, III and IV only
• D) II, III and IV only

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Definitions:

Brand Equity

The value and strength of a brand in the marketplace, often reflected in consumer recognition, loyalty, and the ability to command premium prices.

Commission Percentage

The portion of sales revenue that is paid to an individual or entity as compensation for sales efforts, usually expressed as a percentage of the sale price.

Financing

The process of providing or securing funds necessary for a project, purchase, or venture.

Oral Communication

The process of expressing information or ideas through spoken words.