Facebook Is an Example of a Private Firm

question 98

Multiple Choice

Facebook is an example of a private firm.As a private firm,Facebook is

• A) not subject to government regulations and taxation.
• B) run by stockholders and a board of directors.
• C) run by its founder, Mark Zuckerberg.
• D) not legally allowed to raise funds through venture capital firms.

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Definitions:

Expected Return

The predicted amount of gain or loss an investment is projected to generate, based on historical or anticipated rates of return.

Portfolio

An aggregation of financial holdings that includes stocks, bonds, commodities, cash, cash equivalents, closed-end funds, and exchange traded funds (ETFs).

Systematic Risk

The inherent risk that affects the entire market or a whole segment of the market, often influenced by geopolitical and economic factors.

Portfolio Diversification

An investment strategy used to reduce risk by allocating investments among various financial instruments, industries, and other categories.