Quentin,a Venture Capitalist,is Scanning Mildred's Business Plan to See If

question 64

Multiple Choice

Quentin,a venture capitalist,is scanning Mildred's business plan to see if and when he can recoup his investment and make a profit.Quentin is looking for:

• A)a financial plan.
• B)a marketing plan.
• C)an investment plan.
• D)an exit strategy.

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Definitions:

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, usually expressed as a percentage.

Profit Margin

A measure of profitability calculated as net income divided by revenue.

Equity Financing

The method of raising capital through the sale of shares in a company, giving investors ownership interests.

Current Liabilities

Obligations or debts a company expects to settle within one fiscal year or its operating cycle, whichever is longer.