Jeff Arnold and Reggie Bradford Created WebMD, an Internet Provider

question 103

Multiple Choice

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. What is the investment group called?

• A) angel investors
• B) entrepreneurial capitalists
• C) equity entrepreneurs
• D) investment counsellors

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Definitions:

Unusual In Nature

Events or transactions that are not typical of the normal activities of the entity and thus not expected to recur frequently or regularly.

Pro Forma Earnings

Financial results excluding one-time events to give investors an idea of a company's normal earnings potential.

Basic EPS

Basic Earnings Per Share, a calculation that shows how much earnings are available to common stockholders, on a per-share basis.

Sustainable Earnings

Earnings resulting from the core operations of a company, expected to continue into the future without significant variation.