Beau Works for a Small Pest-Control Company That Has a Total

question 194

Multiple Choice

Beau works for a small pest-control company that has a total of five employees. From his point of view, the primary disadvantage of a small business is the

• A) risk of failure.
• B) limited ability to raise capital.
• C) limited potential for him to advance.
• D) personal relationship with his employer.
• E) complicated management structure.

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Definitions:

Market Yield

The annual income on an investment divided by the market price of the investment, typically expressed as a percentage.

Premium

The amount by which the price of a security exceeds its principal amount or its value at issuance.

Discount

The reduction from the full amount or value of something, especially the price of a financial instrument or merchandise.

Coupon Rate

The annual interest rate paid by a bond as a percentage of the face value, indicating the income investors can expect to receive.