Before Its IPO,Snap,the Parent Firm of Snapchat,was an Example of a Private

question 70

Multiple Choice

Before its IPO,Snap,the parent firm of Snapchat,was an example of a private firm.As a private firm,Snap was

• A)not subject to government regulations and taxation.
• B)run by stockholders and a board of directors.
• C)run by its founders,Evan Spiegel and Bobby Murphy.
• D)not legally allowed to raise funds through venture capital firms.

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Definitions:

Comparative Advantage

An economic theory that suggests that countries or entities gain and benefit from trading if they specialize in producing goods for which they have a lower opportunity cost.

Trade

The act of buying, selling, or exchanging goods and services between people or entities, within or across borders.

Willingness-To-Pay

The maximum amount that a consumer is prepared to pay for a good or service.

Technological Advances

The progress in technology that enhances productivity, efficiency, and quality in various industries.