To Effectively Use Operating Ratios,a Prospective Buyer Should

question 114

Multiple Choice

To effectively use operating ratios,a prospective buyer should

• A) Compare them to industry standards
• B) Use them to identify problems that exist and make changes
• C) Use them as a basis for valuing the business
• D) Compare them to the closest competitor

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Definitions:

Preconscious

Mental content that is not currently in awareness but can be readily brought into awareness through attention or stimuli.

Conscious

Refers to being aware of one's own existence, sensations, thoughts, surroundings, and experiencing perceptions and emotions.

Unconscious

A part of the mind that houses thoughts, memories, and desires not within current conscious awareness but that nonetheless influence behaviors and emotions.

Superego

In Freudian psychoanalytic theory, the part of the personality that acts as a moral center, controlling the impulses of the id based on societal norms and values.