You've Earned Your Degree in Public Relations and Gained a Decade

question 37

Multiple Choice

You've earned your degree in public relations and gained a decade of experience out in the field. You're ready to walk into a board room with a solid background in finance, accounting, or marketing research. This means that you have built a firm foundation in ______.

• A) business
• B) management
• C) human resources
• D) client relations

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Definitions:

Capital Budgeting

The process businesses use to evaluate potential major projects or investments, assessing the value they may add to the company.

Capital Intensity Ratio

A metric that measures the amount of capital needed per unit of output, indicating how capital-intensive a business is.

External Financing Needed (EFN)

The amount of financing required to balance both sides of the statement of financial position.

Dividend Payout Ratio

A financial ratio that measures the percentage of net income a firm pays out to its shareholders as dividends.