Rachel Is a Marketing Manager of a Product Division at New

question 112

Multiple Choice

Rachel is a marketing manager of a product division at New Tech Corporation. She is presenting a new product idea to the director of research and development, which could lead to a profitable new opportunity for the company. Rachel is performing the role of __________.

• A) figurehead
• B) monitor
• C) disseminator
• D) entrepreneur
• E) negotiator

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Definitions:

External Equity

Refers to funds raised through issuing shares of stock to outside investors, as opposed to internal financing through retained earnings.

Required Rate

The minimum return an investor expects to achieve from an investment, considering its risk level.

External Equity

Funds raised through the sale of company shares in the capital markets, as opposed to internal financing through retained earnings.

Retaining Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to be reinvested in its core business or to pay debt.