When Companies Cannot Plan for the Future and When Investors

question 45

True/False

When companies cannot plan for the future and when investors feel they cannot estimate future corporate earnings or interest, inflation, or default rates, they tend to hold cash instead of investing in a new factory or equipment.

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Definitions:

Radial Symmetry

A body plan in which any section through the mouth and down the length of the body divides the body into similar halves. Jellyfish and other cnidarians have radial symmetry. Compare with bilateral symmetry.

Protostomes

A group within the animal kingdom that includes organisms in which the mouth develops from the primary embryonic opening.

Radial Cleavage

A type of embryonic development in deuterostomes where the planes of cell division are either parallel or perpendicular to the vertical axis of the embryo, resulting in the cells being positioned directly above or beside each other.

Cleavage

Series of mitotic cell divisions, without growth, that converts the zygote to a multicellular blastula.