Each of the Examples of the Entrepreneurs in the Textbook

question 24

Multiple Choice

Each of the examples of the entrepreneurs in the textbook has something in common. That commonality is

• A) they built their businesses by buying them in bankruptcy.
• B) they built their businesses from good ideas and hard work.
• C) they sold their businesses before they failed.
• D) they inherited their businesses from their parents.
• E) they built their businesses after consulting each other.

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Definitions:

Common Shares

Equity securities that represent ownership interests in a corporation, providing voting rights and potential dividends to shareholders.

Preferred Shares

A class of ownership in a corporation with a fixed dividend, that has priority over common shares in the distribution of dividends and assets.

SEC Requires

Mandatory rules and requirements established by the Securities and Exchange Commission that publicly traded companies must follow to protect investors and ensure the integrity of the securities markets.

Common Stock

Common stock represents units of ownership interest or equity in a corporation, where holders usually have voting rights to elect the board of directors.