Complete the Following Using the Terms Listed Below

question 120

Multiple Choice

Complete the following using the terms listed below.
-______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

• A)venture capitalists
• B)private placements
• C)factoring
• D)capital investment analysis
• E)debt capital
• F)equity capital
• G)financial plan
• H)leverage buyout
• I)private equity funds
• J)divestiture
• K)marketable securities
• L)financial manager
• M)tender offer
• N)trade credit
• O)leverage
• P)capital structure
• Q)asset intensity
• R)bonds

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Definitions:

FICA

Stands for Federal Insurance Contributions Act, specific U.S. legislation that funds Social Security and Medicare through payroll taxes.

Seller Bears

Refers to situations where the seller is responsible for any additional costs or risks associated with a transaction.

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, contributions are made by both employees and employers.

Burden Falls

An economic term referring to how the costs or economic burdens of a policy, tax, or regulation are distributed among various stakeholders.