Which of the Following Factors Might Be Most Important for an Entrepreneur

question 41

Multiple Choice

Which of the following factors might be most important for an entrepreneur that is considering an IPO in an industry where a firm's strategy is its most important asset.

• A) the use of stock as a compensation vehicle
• B) the investment banking fee
• C) the disclosure requirements of publicly traded firms
• D) all of the above are most import to such a firm

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, not necessarily aligning with the calendar year.

Indirect Method

A way to present the cash flow from operating activities by starting with net income and adjusting for changes in balance sheet items.

Operating Activities

Operating activities are daily business functions related to producing and selling goods or services, which are reflected in a company's cash flow.