What Is One Way to Ease the Burden of Managing

question 53

Multiple Choice

What is one way to ease the burden of managing a business?

• A) Operate the business 20 hours a week.
• B) Hire outside consultants.
• C) Do all the work yourself and hire no employees.
• D) Keep minimal inventory on hand.

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short term liquidity of a company.

Net Capital Spending

This refers to the amount spent by a company on acquiring or maintaining fixed assets, such as equipment or buildings, after accounting for depreciation.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the purchase price.