Facebook Is a Prime Example of the Linkage Function

question 35

True/False

Facebook is a prime example of the linkage function.

Understand the difference between equity and debt finance.

Comprehend the reasons behind the slope of the demand for loanable funds and the supply of loanable funds.

Identify the role and functions of financial intermediaries in the economy.

Describe factors affecting bond interest rates including the issuer's financial condition and term length.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Total Assets

The sum of all current and non-current assets owned by a company.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting a company’s profitability.

Net Income

The remaining earnings of a corporation after deducting all expenditures and tax obligations from its revenue.