Because Privately-Owned Firms Do Not Have to Account to Stock

question 9

Multiple Choice

Because privately-owned firms do not have to account to stock analysts:

• A)short-term profits may be more important than long-term growth.
• B)long-term profits may be more important than showing consistent positive quarterly returns.
• C)short-term sales growth may be more important.
• D)it is important to show consistent quarterly profit returns.

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Definitions:

Beat the Market

Achieving investment returns that surpass benchmark or average returns of the financial markets.

Interest Rate

The expense associated with lending funds or the profit gained from investments, usually represented as a percentage.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a period.

Present Value

The existing value of a future sum of money or cash flows, considering a certain return rate.