Your Friend Brett Called to Tell You He Just Heard

question 240

True/False

Your friend Brett called to tell you he just heard a sales pitch for a new website development franchise where "he can get in for a few thousand dollars." He wants to know if you are ready to invest too. Although you lack expertise in graphic design or html programming, this should be a safe investment since it is already advertised as a franchise system. It's probably too good to pass up.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation and entitles holders to vote on company matters.

Book Value Per Share

A company's equity available to common shareholders divided by the number of outstanding shares, indicating the value of a company's shares based on its financial statements.

Net Income

The profit of a company after all expenses and taxes have been subtracted from revenue.

Gross Margin Percentage

A financial metric that measures a company's financial health by dividing gross margin by total revenue, expressed as a percentage.