8 Questions
What is the main difference between growth businesses and value businesses?
Growth businesses reinvest most of their profits for future growth, while value businesses pay out most of their profits to investors as dividends.
What is the primary way investors in growth businesses expect to benefit?
By seeing the share price grow
Which of the following statements is true about Amazon based on the text?
Amazon reinvests its profits heavily for future growth opportunities.
Why do investors in value businesses typically hope to enjoy a good level of stable income?
Because value companies pay out most of their profits as dividends.
Which company mentioned in the text is an example of a growth business?
Netflix
What is the primary focus of Google's revenue stream according to the text?
Advertising
Which type of business tends to have more opportunities for further expansion?
Growth businesses
How do growth businesses differ from value businesses in terms of profit distribution?
Value businesses distribute most of their profit as dividends while growth business reinvest most of their profits.
Learn about market capitalization, which is calculated by multiplying the number of shares by the share price. Explore the rough guidelines for categorizing companies based on their size as small cap, midcap, or large cap according to their market values.
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