Which of the Following Statements About the Behavior of Investors

question 126

Multiple Choice

Which of the following statements about the behavior of investors is True?

• A) A company with a good strategy will attract investors in spite of any other conditions in the economic environment.
• B) Investors may have expectations for short-term profits, long-term profitability, or both when considering companies in which they might invest.
• C) Investors are not usually interested in detailed information about a firm's plans before they invest.
• D) Financial performance estimates that are provided to investors have no relationship to estimates of demand, revenue, and expenses from the marketing manager.
• E) None of the above.

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Definitions:

Pro Forma Financial Statements

Forward-looking financial documents that project a business’s future financial performance based on certain assumptions.

Financial Condition

The status of an organization or individual's financial health, typically assessed through analysis of assets, liabilities, income, and expenditures.

Future

The time period that is to come, which is uncertain and yet to be determined.

Activity Ratios

Financial ratios that measure the speed with which various asset accounts are converted into sales or cash.