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What Is the One- Third Rule? What Is It Used

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What is the one- third rule? What is it used for?


Definitions:

Notes Payable

Financial obligations represented by promissory notes, which require the payer to repay the debt within a specified timeframe.

Asset Utilization Ratio

A metric that measures how efficiently a firm uses its assets to generate sales or revenue.

Net Income

The remainder income for a company once it has accounted for all expenditures and tax payments from its earnings.

Sales

Transactions involving the exchange of goods or services for money or equivalent rewards.

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