Always Paying Cash Is Helpful in Establishing a High Level

question 33

True/False

Always paying cash is helpful in establishing a high level of creditworthiness.

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Definitions:

Return On Investment (ROI)

A performance measure used to evaluate the efficiency of an investment by comparing its gain to its cost.

Contribution Margin Ratio

The proportion of revenue from each dollar of sales that goes toward covering fixed expenses and creating profit.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as leases and insurance premiums.

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.