Which of the Following Questions Would Provide the BEST Information

question 29

Multiple Choice

Which of the following questions would provide the BEST information to help you decide whether or not to buy a business?

• A)Why did the current owner start the business?
• B)Why is the business for sale?
• C)What are the demographics of the current customer base?
• D)How is employee morale?

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Definitions:

Return on Total Assets

Return on total assets (ROTA) is a financial ratio that measures the profitability of a company in relation to its total assets.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Beginning Total Assets

The total value of all assets owned by a company at the start of a financial period.

Ending Total Assets

Ending Total Assets refer to the total value of all assets owned by a company at the end of a financial reporting period.