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Which of the following indicates that investors expect future growth for Tesla?

1) the firm's philanthropic efforts
2) the increasing value of the company's stock
3) the large upfront investment Tesla had to make
4) the lack of a defined competitive challenge

User Mummybot
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1 Answer

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Final answer:

The increasing value of Tesla's stock indicates that investors expect future growth. IPOs provide capital for growth and venture capital firms may sell shares during such offerings. Corporate governance is usually handled by a board of directors in large shareholder-owned companies.

Step-by-step explanation:

Indicator of investors' expectations of future growth for Tesla can be inferred by the increasing value of the company's stock. When a firm's stock value increases, it often suggests that investors are optimistic about the company's future earnings and growth potential. A rising stock price signals market confidence in Tesla's future prospects and the anticipation of higher future profits.

Initial public offerings (IPOs) are also a vital sign of growth as they provide significant capital for companies to expand. This capital influx can help a company like Tesla substantially grow its operations and repay early investors such as venture capital firms. However, companies do not promise a specific rate of return when selling stock, as returns depend on several factors including market performance and company growth.

Regarding corporate governance, in companies with a large number of shareholders, decisions are typically made by a board of directors elected by the shareholders. The board represents the shareholders' interests and makes strategic decisions to guide the company.

User Bronsoja
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