Katherine Frans Just Received an Inheritance of $50,000 from Her

question 66

Multiple Choice

Katherine Frans just received an inheritance of $50,000 from her grandmother. She has decided to use the money to start a business that she has always been interested in starting. For Katherine, the $50,000 inheritance represents a ________ that prompted her to start a business.

• A) lifestyle event
• B) threshold event
• C) initiative event
• D) milestone event
• E) triggering event

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Definitions:

Static Theory

Static Theory refers to economic theories or models that do not account for changes in the economy over time, analyzing a fixed point instead.

Interest Tax Shield

The decrease in income tax owed that occurs when interest payments on borrowed funds are subtracted from taxable income.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, generating regular income for investors.