Which of the Following Contributed Most to Many Companies Becoming

question 67

Multiple Choice

Which of the following contributed most to many companies becoming highly leveraged in the lead-up to the economic downturn in 2008?

• A)high interest rates
• B)low interest rates
• C)limited liquidity
• D)no liquidity

---

Definitions:

Venture Capital

Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.

Retained Earnings

The portion of a company's profits not paid out as dividends, but reinvested in the business.

Total Utility

The complete satisfaction or fulfillment a person derives from consuming a certain quantity of goods or services.

Successful New Products

Innovations that achieve significant customer acceptance and financial viability within a market.