Equity Capital for Which There Is No Guarantee That Stockholders

question 28

Multiple Choice

Equity capital for which there is no guarantee that stockholders will ever recoup their investment or earn a decent return is called __________________________.

• A) capital
• B) investments
• C) risk capital
• D) stock options
• E) none of the above

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Definitions:

Subconscious

A part of the mind not fully aware but influences one's actions and feelings.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.

Repression

Defense mechanism in which the ego pushes anxiety-provoking material back into the unconscious.

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.