Which of the Following Are Not "Backend" Costs for an Entrepreneur

question 35

Multiple Choice

Which of the following are not "backend" costs for an entrepreneur seeking capital by selling securities (shares of stock in the corporation) ?

• A)Prospectus printing costs
• B)Investment banking fees
• C)Legal fees ​
• D)Marketing costs
• E)Brokerage fees

---

Definitions:

Income Decrease

Income decrease refers to a reduction in the amount of money earned by an individual or received by a household, affecting their ability to spend and save.

Giffen Goods

A type of product that paradoxically experiences increased demand as its price rises, seemingly contrary to the basic law of demand due to the effect on consumption of essential goods.

Inferior Goods

Products whose demand decreases as the income of consumers increases, due to the preference for higher-quality substitutes.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.