Lance Is Looking for Ways to Get More Capital for His

question 221

Multiple Choice

Lance is looking for ways to get more capital for his appliance sales and service business.He is very protective of his company's information and fears that it will get into the wrong hands.Lance would probably not want to

• A) hire new employees.
• B) incorporate his company.
• C) get a loan from a bank.
• D) take on a trustworthy friend as a partner.
• E) use a computerized accounting system.

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Definitions:

Compounded Semiannually

The process of applying interest to an investment or loan twice a year, resulting in compound growth.

Face Value

The nominal value or dollar value stated on a security or financial instrument, such as a bond.

Investment Yield

The income returned on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

Maturity Date

The specified date when the principal amount of a loan, bond, or other financial instrument is due to be paid in full.