SuLin Is Setting Up a Small Construction Shop and Uses

question 79

Multiple Choice

SuLin is setting up a small construction shop and uses his personal credit card to purchase the company's basic equipment.This process is referred to as which of the following:

• A)venture capital
• B)credit
• C)external funding
• D)bootstrapping

Recognize and apply financial measures such as the Sharpe ratio, Capital Allocation Line (CAL), and understand the concept of leverage in portfolio management.

Understand the relationship between risk aversion and investment choice, including the selection criteria for optimal risky portfolios.

Appreciate historical asset performance, particularly stocks, in mitigating inflation and taxes over the long term.

Understand the basic functionalities of Query Design view.

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Definitions:

Gross Profit Rate

A financial metric indicating the proportion of money left from revenues after accounting for the cost of goods sold.

Sales Revenue

The gross revenue of a company refers to the entire sum of income derived from selling products or services before deducting any costs.

Sales Returns

Transactions in which customers return previously purchased merchandise to the seller for a refund, store credit, or exchange due to various reasons such as defects or dissatisfaction.

Income From Operations

The earnings of a business generated from its regular business operations, excluding revenues and expenses from non-operational activities.