Bob's New Startup Goes Public and Sells Shares of Future

question 5

Multiple Choice

Bob's new startup goes public and sells shares of future profits.Bob's startup is best described as a

• A)​saver or as a supplier of funds.
• B)​saver or as a demander of funds.
• C)​borrower or as a supplier of funds.
• D)​borrower or as a demander of funds.

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Definitions:

Unemployment Tax

A tax that employers pay to the government to fund unemployment benefits for workers who lose their jobs.

Social Security Tax

A tax that funds the United States' Social Security program, collected from both employees and employers.

Take-Home Pay

The amount of income that an individual actually receives after deductions, such as taxes and social security, have been subtracted from their gross salary.

SUTA Tax

A state-level tax that employers pay to fund their state's unemployment benefits programs, with rates and wage bases that can vary by state.