When Electronic Arts,the Company Behind the Games Zuma and Plants

question 23

Multiple Choice

When Electronic Arts,the company behind the games Zuma and Plants vs.Zombies,sold stock to the public for the first time in September 1989,funds were being raised in a ________ market,and when those newly issued shares are resold to other buyers,the sales take place in a ________ market.

• A)primary; primary
• B)primary; secondary
• C)secondary; primary
• D)secondary; secondary

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Definitions:

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period.

Understatement

An error or omission that causes the reported amount or value of an asset, liability, income, or expense to be lower than the true amount.

Net Income

The company's residual income following the deduction of all expenses and taxes from its total revenue.

Cash Flow

A financial metric that measures the net amount of cash and cash equivalents being transferred into and out of a business.