Activist Capitalists Who Seek Out or Create Earnings Opportunities and Assume

question 40

Multiple Choice

Activist capitalists who seek out or create earnings opportunities and assume risk, for which they receive profits, are called

• A)rent seekers.
• B)entrepreneurs.
• C)muckrakers.
• D)marginalists.

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Definitions:

Average Collection Period

The expected time a business collects payments from its customers for goods or services it has sold on credit terms.

Average Investment

The mean amount invested in certain assets or projects over a specific time period, aiming to gauge investment activity.

Net Working Capital

The gap between what a business owns in short-term assets versus what it owes in short-term liabilities.

Net Fixed Assets

The value of a company’s property, plant, and equipment (PP&E) minus its accumulated depreciation, indicating the net book value of its fixed assets.