Which of the Following Is the Most Common Use of Business

question 97

Multiple Choice

Which of the following is the most common use of business plans?

• A) to persuade lenders and investors to finance the venture
• B) to comply with the Ontario Securities Commission
• C) to persuade customers to buy the new product or service
• D) to use as a recruitment tool

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Definitions:

Diluted EPS

Earnings per share calculated using the potential conversion of dilutive securities, showing the possible decrease in earnings per share if these were converted.

Convertible Bonds

Bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during their life, usually at the discretion of the bondholder.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Journal Entry

A record in accountancy that captures the financial transactions of a company, showing the accounts affected and in which direction (debit or credit).