(21) What is the definition of “Venture Capital” in the world of finance?
- (a) Investment provided by individuals or firms to support early-stage, high-potential, and high-risk startups or companies.
- (b) The total revenue generated by a company.
- (c) The process of going public by selling shares to the general public.
- (d) The practice of acquiring established companies.
(22) What does the term “Net Present Value (NPV)” represent in financial analysis?
- (a) The difference between the present value of cash inflows and the present value of cash outflows over the life of an investment.
- (b) The total assets owned by an individual or company.
- (c) The calculation of a company’s net income.
- (d) The total revenue generated by a company.
(23) What is the definition of “Initial Public Offering (IPO)” in the world of finance?
- (a) The first sale of a company’s stock to the public, allowing it to raise capital by issuing shares.
- (b) The process of merging two or more companies.
- (c) The total revenue generated by a company.
- (d) The act of borrowing money to finance business operations.
(24) What does the term “Diversified Portfolio” mean in investment strategy?
- (a) A portfolio that includes a variety of different asset classes and investments to spread risk.
- (b) The total assets owned by an individual or company.
- (c) The process of selling a company’s assets.
- (d) The calculation of a company’s net worth.
(25) What is the definition of “Operating Income” in financial reporting?
- (a) The profit a company earns from its regular, core business operations before interest and taxes.
- (b) The total revenue generated by a company.
- (c) The amount of money held in a company’s bank account.
- (d) The process of selling inventory at a profit.
