Complete the Following Using the Terms Listed

question 115

Multiple Choice

Complete the following using the terms listed.
-Similar to venture capitalists,_____ are investment companies that raise money to invest in all types of promising companies,including mature businesses.

• A)Venture capitalists
• B)private placements
• C)factoring
• D)capital investment analysis
• E)debt capital
• F)equity capital
• G)financial plan
• H)leveraged 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
• S)spin-off
• T)Hedge funds
• U)Inventory control
• V)dividends
• W)debt-to-equity (D/E)
• X)compensating balances
• Y)shareholder's equity

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Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, influenced by comparative advantages and economies of scale.

Infant-Industry Argument

The economic rationale for protecting new industries with tariffs or other trade barriers until they become competitive internationally.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to control trade and protect domestic industries.

Import Quota

A specific limit or maximum quantity (or value) of a good permitted to be imported into a country during a given period.