Linden Dollars, Created for Use in Second Life, Are an Example

question 49

Multiple Choice

Linden Dollars, created for use in Second Life, are an example of:

• A)digital cash.
• B)virtual currency.
• C)EBPP.
• D)peer-to-peer payment systems.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to determine the rate of return a company must earn on its existing assets to satisfy its creditors, owners, and other providers of capital.

Low Risk Projects

Investments or projects that are considered to have a lower probability of resulting in a financial loss.

Investor Risk Aversion

The tendency of investors to prefer lower-risk investments to avoid potential losses.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.