Before a Company Can Sell Shares to the Public in the United

question 16

Multiple Choice

Before a company can sell shares to the public in the United States,it must ________.

• A) generate a profit of $1 billion
• B) have a turnover of $1 billion
• C) register with the SEC
• D) have fifty or more shareholders
• E) have a hundred or more shareholders

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, considering the time value of money.

Hiring Capital

The resources, often financial, that an organization allocates to the process of recruiting and acquiring new employees or talent.

Future Profits

Expected gain in financial terms that a business anticipates receiving over a forthcoming period, based on current strategies, market conditions, and operations.

Hiring Labor

The process of finding, evaluating, and employing individuals to work for a business or organization.