If You Are Willing to Hold on to Your Growth

question 51

True/False

If you are willing to hold on to your growth stock long enough, at least five years or more, you will realize capital gains.

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Definitions:

Relevant Costs

Costs that are directly related to a specific management decision and that will change as a result of that decision.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Alternatives

Different options or strategies available for achieving a goal or solving a problem, often considered during decision-making processes.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or business activity.