Which of the Following Is a Key Factor That Organizers

question 61

Multiple Choice

Which of the following is a key factor that organizers of a proposed new bank use in evaluating their investment opportunity?

• A)The level and growth of economic activity
• B)The need for a new financial firm
• C)Management quality
• D)Pledging of capital required to cover all costs of getting started
• E)All of the options are correct.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the company's stock, rather than cash.

Retained Earnings Statement

A financial report detailing the variations in retained profits over a definite time frame.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.