Author Question: A firm that retains earnings does the equivalent of (Read 112 times)

tingc95 · **on:** Apr 19, 2019

Question 1

A fund that takes household savings and puts them into ________ projects in exchange for a share of the profits if the new business succeeds is a venture capital fund.

◦ government
◦ zero-risk
◦ low-risk
◦ high-risk

Question 2

A firm that retains earnings does the equivalent of

◦ lending money to the firm's shareholders.
◦ borrowing money from the firm's shareholders.
◦ decreasing the net worth of the firm's shareholders.
◦ decreasing its own net worth.

FergA · **Reply #1 on:** Apr 19, 2019

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