Before Its IPO,Twitter Was an Example of a Private Firm

question 204

Multiple Choice

Before its IPO,Twitter was an example of a private firm.As a private firm,Twitter was

• A)not subject to government regulations and taxation.
• B)run by stockholders and a board of directors.
• C)run by its founders,Evan Williams,Noah Glass,Jack Dorsey,and Biz Stone.
• D)not legally allowed to raise funds through venture capital firms.

---

Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production or acquisition of goods.

Rate of Return

The percentage gain or loss on an investment over a specified time period.

Operating Cash Flow

Cash generated from a company's regular operational activities, reflecting its ability to generate cash from its core business operations.

Top-Down Approach

A method of analysis that starts with the broader economy or large investment categories and works its way down to individual stocks or securities.