Use the Following to Answer Questions

question 50

Multiple Choice

Use the following to answer questions:
Scenario 6-1. Jerry Jones is a young entrepreneur straight out of college. After taking a course in Small Business Management, Jerry has decided that he would like to purchase an existing business and hopefully avoid some beginner's errors. He spends some time looking and finally finds a business that appeals to him, a small sporting goods store. Jerry loves to fish and hunt. The store currently has a huge inventory in place. Jerry decides to pursue purchasing the business further.
-In Reference 6-1 above, since the sporting goods store has a huge inventory, Jerry needs to be familiar with which of the following codes?

• A) Code of ethics
• B) Code of inventory purchasing
• C) Uniform Commercial Code
• D) Inventory Commercial Code

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for it to be considered a viable option.

Share Price

The current market price of a company’s stock, reflecting what investors are willing to pay for a share at a given time.

Expected Return

The mean of all the likely returns of securities or portfolios over a set period.

Growth Rate

The rate at which a company's earnings, revenue, or other financial metrics increase on a year-on-year basis expressed as a percentage.