You Are Considering the Purchase of a Business That Is

question 82

Multiple Choice

You are considering the purchase of a business that is currently earning $25,000 per year in after-tax profit. If these conditions are expected to continue year after year into the future, and the interest rate is currently 10 percent, the current market value of this business is

• A) $2,500.
• B) $25,000.
• C) $250,000.
• D) $2,500,000.

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Definitions:

Specific Trait

A distinct characteristic or quality that can be attributed to an individual organism, often used in genetics and psychology.

Genetic Mutations

Changes or alterations in the DNA sequence of an organism that can lead to variations in physical appearance, function, or health.

Environmental Pollutants

Substances introduced into the environment that can cause harm or discomfort to organisms, including humans.

Sickle-cell Gene

A genetic variant that affects the shape of red blood cells, causing them to assume a sickle shape, which can lead to various health complications.