TransWave International Is a Small Company That Has Developed a System

question 169

Multiple Choice

TransWave International is a small company that has developed a system that uses the web and patented electronic sensors as an early-warning device for pipeline leaks.Pipeline safety is becoming a big issue in the U.S.as more natural gas lines are being laid near populous centres.The timing is right for this company to be extremely successful,but it must use _____ advertising so oil companies will know of its product's existence.

• A)reminder
• B)competitive
• C)pioneering
• D)institutional

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Definitions:

EBIT

Earnings Before Interest and Taxes represents a company's profit, encompassing all revenues and costs apart from interest and taxes.

EPS

Earnings per share. A firm’s earnings stated on a per-share outstanding basis. An important measure of business performance in the stock market.

Equity

Ownership interest in a company, represented by shares that entitle holders to a share of the company's profits.

Financial Leverage

The use of borrowed money to multiply financial performance in terms of ROE and EPS.