Business Organizations Are Finding Ways to Establish a Presence on Popular

question 2

True/False

Business organizations are finding ways to establish a presence on popular SNS sites like Facebook and MySpace so that they can control their customers.

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Definitions:

Equity Financing

A method of raising capital for a company through the sale of shares in the company, thus giving shareholders ownership interests.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing financial leverage or external equity.

Retention Ratio

The share of net income not disbursed as dividends to shareholders but rather reserved by the business for various uses.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in the form of dividends, compared to the portion reinvested in the business.