Author Question: When you use your own savings to start a business, you make a profit (Read 38 times)

notis · **on:** Apr 19, 2019

Question 1

As a holder of a share of common stock, you are

◦ entitled to a portion of the firm's revenues.
◦ entitled to a portion of the firm's profits.
◦ entitled to a standard percentage return on your investment.
◦ responsible for the liabilities of the corporation.

Question 2

When you use your own savings to start a business, you make a profit

◦ after the first dollar you earn, because you borrowed no funds to start the business.
◦ after you earn an amount equal to the savings you used to start the business.
◦ only after you cover the opportunity cost of using your savings to start your business.
◦ only after you earn double the amount of money you invested.

nguyenhoanhat · **Reply #1 on:** Apr 19, 2019

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