Basic finance terms that every entrepreneur should fully understand

May 28th, 2015
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A. T. Still University
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An individual can only save and invest in a corporation by lending money to it or by purchasing additional shares.

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True / False Questions1.Cumulative retained earnings of Apple Computers were $9.1 billions at the end of 2007.TRUEAACSB: Communication AbilitiesBloom's: KnowledgeDifficulty: EasyLearning Objective: 2-12.The reinvestment of cash back into the firm's operations is an example of a flow of savings to investment.TRUEAACSB: Reflective Thinking SkillsBloom's: UnderstandingDifficulty: EasyLearning Objective: 2-13.Smaller businesses are especially dependent upon internally generated funds.TRUEAACSB: Reflective Thinking SkillsBloom's: UnderstandingDifficulty: HardLearning Objective: 2-14.An individual can only save and invest in a corporation by lending money to it or by purchasing additional shares.FALSEAACSB: Reflective Thinking SkillsBloom's: UnderstandingDifficulty: MediumLearning Objective: 2-15.Previously issued securities are traded among investors in the secondary markets.TRUEAACSB: Communication AbilitiesBloom's: KnowledgeDifficulty: EasyLearning Objective: 2-36.Only the IPOs for large corporations are sold in primary markets.FALSEAACSB: Communication AbilitiesBloom's: KnowledgeDifficulty: MediumLearning Objective: 2-37.Financial markets are also called equity markets.FALSEAACSB: Communication AbilitiesBloom's: KnowledgeDifficulty: EasyLearning Objective: 2-38.The markets for long-term debt and equity are called capital markets.TRUEAACS

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