Risk Is a Problem Faced

question 121

Multiple Choice

Risk is a problem faced

• A) only in market systems.
• B) only in command systems.
• C) in both market systems and command systems.
• D) in neither market systems nor command systems, only in laissez-faire capitalism.

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Definitions:

Treasury Stock

Shares of a company’s own stock that it has reacquired from shareholders but not retired, listed as a contra equity account on the balance sheet.

Common Stock Optionwarrants

Equity derivatives that give the holder the right to purchase common stock at a specified price within a certain time period.

Unrealized Increase

The potential gain in the value of an investment that has not yet been sold and thus not yet converted into actual profit.

Donated Capital

Assets and resources given to a company without the expectation of return or compensation, often used to fund operations or expand business activities.