Social Entrepreneurs Use the Fundamental Principles of Entrepreneurship to Build

question 62

True/False

Social entrepreneurs use the fundamental principles of entrepreneurship to build businesses of economic and social value.

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Definitions:

Cost of Equity

The return that investors require for investing in a company's equity, representing the compensation for taking on equity risk.

Capital Structure

The specific blend of equity and debt that a company employs to fund its general activities and expansion.

Market Risk Premium

Refers to the extra expected return that investors demand for choosing to invest in the stock market over risk-free securities.

Levered Firm

A company that employs debt in its capital structure.