During the Startup of a Company, the Founder Makes Several

question 56

Multiple Choice

During the startup of a company, the founder makes several critical decisions including:

• A) innovating the product(s) to sell.
• B) formulating the best marketing strategy for selling the products manufactured.
• C) raising the funds necessary to develop the product(s).
• D) formulating an efficient plan for its expansion.

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Definitions:

Stock

Equity investment that represents ownership in a company and entitles the holder to a proportion of its profits.

Percentage Return

The increase or decrease in an investment, represented as a fraction of its initial cost and expressed as a percentage.

Preferred Stock

A type of stock that provides a fixed dividend that is paid before any dividends are paid to common stockholders and typically does not have voting rights.

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.