Perry's Business Is Not in the Safest Neighborhood

question 69

Multiple Choice

Perry's business is not in the safest neighborhood.He is concerned about robbery and vandalism,two types of:

• A)business risk.
• B)market risk.
• C)pure risk.
• D)uninsurable risk.

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Definitions:

First Dividends

The initial distribution of earnings declared by a company to its shareholders.

Constant Dividend

A dividend policy in which a firm aims to distribute a fixed amount or a stable dividend to shareholders per share, unaffected by fluctuations in its earnings or profits.

Required Rate of Return

The minimum expected rate of return on an investment, deemed necessary to compensate for its risk.

Annual Dividend

An annual dividend is the yearly sum paid by a corporation to its shareholders, representing a portion of the company's earnings distributed per share.