Marina Is Developing a New Software Company

question 70

Multiple Choice

Marina is developing a new software company. She locates her business in an industrial park that offers low rent and shared support staff to start up companies. This is an example of a

• A)skunkworks.
• B)spin-off.
• C)franchise.
• D)bootlegging operation.
• E)business incubator.

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Definitions:

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Stock Splits

Corporate actions that increase the number of shares outstanding, reducing the price per share but not changing the company's overall market capitalization.