The Startup Phase of a Business Usually Lasts for More

question 49

Multiple Choice

The startup phase of a business usually lasts for more than _____.

• A)6 months
• B)3 years
• C)5 years
• D)1 year

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Retained Earnings

Profit that remains after dividends are paid, which is reinvested in the company or used to pay off debt.

Treasury Stock

Shares of a company's own stock that it has reacquired but not retired, which do not pay dividends and have no voting rights.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.