You Purchase a Stock with Cash, and You Earn a Negative

question 58

Multiple Choice

You purchase a stock with cash, and you earn a negative return on the stock. If you had purchased the stock with 60 percent cash and 40 percent borrowed funds, your return on your investment would have been

• A)positive.
• B)more negative than if you had covered the entire investment with cash.
• C)negative, but more favorable than if you had covered the entire investment with cash.
• D)zero.

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Definitions:

Cultural Differences

The variations in the norms, values, beliefs, and practices that exist among people from different backgrounds and societies.

Achievement Orientation

Concentration on establishing and achieving superior performance levels.

Collectivist

Pertaining to a cultural orientation that emphasizes the needs, goals, and views of the group over those of the individual.

Ethical Sensitivity

The ability to recognize and evaluate ethical considerations and dilemmas in decision-making processes.