Which of the Following Items Is Least Appropriate to Purchase

question 38

Multiple Choice

Which of the following items is least appropriate to purchase with a credit card unless you will pay the bill in full when the statement is received?

• A)A new suit
• B)Groceries
• C)Microwave oven
• D)Smart phone

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Definitions:

Closely Held Corporation

A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Dividend Stream

Dividend Stream is the sequence of cash payments made to shareholders of a corporation over time, typically derived from the company's earnings.

Required Return

The least amount of return expected by an investor from putting money into a certain asset, while taking its risk profile into account.