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What is the main difference between growth businesses and value businesses?
What is the main difference between growth businesses and value businesses?
- Growth businesses pay out most of their profits as dividends, while value businesses reinvest most of their profits for future growth.
- Growth businesses are typically smaller in market capitalization compared to 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. (correct)
- Growth businesses have fewer opportunities for expansion, while value businesses have numerous growth opportunities.
What is the primary way investors in growth businesses expect to benefit?
What is the primary way investors in growth businesses expect to benefit?
- By seeing the share price grow (correct)
- By investing in well-established companies
- By receiving high dividend payments
- By experiencing stable income
Which of the following statements is true about Amazon based on the text?
Which of the following statements is true about Amazon based on the text?
- Amazon has a small market capitalization compared to other companies.
- Amazon is a value company known for its stable dividends.
- Amazon reinvests its profits heavily for future growth opportunities. (correct)
- Amazon focuses solely on advertising revenue for its growth.
Why do investors in value businesses typically hope to enjoy a good level of stable income?
Why do investors in value businesses typically hope to enjoy a good level of stable income?
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Which company mentioned in the text is an example of a growth business?
Which company mentioned in the text is an example of a growth business?
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What is the primary focus of Google's revenue stream according to the text?
What is the primary focus of Google's revenue stream according to the text?
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Which type of business tends to have more opportunities for further expansion?
Which type of business tends to have more opportunities for further expansion?
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How do growth businesses differ from value businesses in terms of profit distribution?
How do growth businesses differ from value businesses in terms of profit distribution?
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