In Commodity Businesses,such as Growing Wheat,mining for Gold,or Fabricating DRAM

question 51

True/False

In commodity businesses,such as growing wheat,mining for gold,or fabricating DRAM semiconductors,the principal key success factors are concerned with the sources of cost efficiency.

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Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often with set dividend payments.

Common Shares Outstanding

The total number of shares of common stock currently held by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.