An Opportunity Cost Is the Potential Benefit Given Up by Using

question 25

True/False

An opportunity cost is the potential benefit given up by using resources in an alternative course of action.

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Definitions:

Dividends Paid

Cash or other forms of assets distributed by a corporation to its shareholders out of its earnings.

Average Collection Period

The average number of days it takes a company to receive payment after a sale has been made.

Return On Assets Ratio

The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets, indicating efficiency in using assets to produce earnings.