Which of the Following Statements Is Incorrect Regarding Equity Funding

question 35

Multiple Choice

Which of the following statements is incorrect regarding equity funding?

• A) Equity investors expect to get their money back, along with a substantial capital gain, through the sale of their stock.
• B) Angel investors are a common source of equity funding.
• C) Equity funding is not a loan.
• D) Equity investors are very demanding.
• E) Equity investors fund the majority of the plans they consider.

Understand the recommended practices for extending praise to employees.

Learn about common misconceptions regarding the use of positive reinforcement and how to correct them.

Appreciate the importance of valuing non-tangible rewards over tangible ones in enhancing job satisfaction.

Recognize the barriers to effective positive reinforcement and strategies to overcome them.

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Definitions:

Current Liabilities

Obligations or debts that a company expects to pay or settle within one year or its operating cycle, whichever is longer.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate the relative value of company shares.

Market Price

The current price at which an asset or service can be bought or sold.