Ian Has Decided to Start a Business Installing Voice Over

question 48

Multiple Choice

Ian has decided to start a business installing voice over Internet protocol (VOIP) software on computers,which allows individuals to make phone calls via the Internet.To get his business up and running,Ian has decided to place an ad in the paper.He does not have any money,so he has to put the cost of the ad on his credit card.Ian will spend more money than he will make in the first three months due to the fact that his VOIP business is in which stage of its life cycle?

• A)maturity
• B)decline
• C)introduction
• D)growth

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Definitions:

Incremental Value

The additional value created by undertaking a particular action, project, or investment, compared to not doing so.

Shares Outstanding

The total number of shares of a company that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Incremental Value

The additional or extra value created by undertaking a certain action or decision, compared to doing nothing or choosing an alternative.

Value Per Share

The financial value assigned to each individual share of a company, often determined by dividing the company’s total value by the number of outstanding shares.