You Own Shares in a Start-Up Internet Company

question 225

Multiple Choice

You own shares in a start-up internet company.If large swings in the stock market increase financial investors' concerns about market risk,then the price of your shares will ________,holding all other factors constant.

• A) increase
• B) decrease
• C) not change
• D) either increase or decrease
• E) be indeterminate

---

Definitions:

Product Cost

The total of costs directly associated with the creation of a product, including raw materials, labor, and manufacturing overheads.

Period Cost

Expenses that are not directly tied to the production of goods and are therefore recorded as expenses for the accounting period in which they occur.

Rent on Office

The cost incurred for leasing office space, which is considered an operational expense for businesses.

Selling and Administrative Expense

The aggregate of all indirect costs associated with the selling of products and the general operations of a business.