You Own a Deli

question 307

Multiple Choice

You own a deli. Which of the following is a decision most likely to be made in the LONG run at your deli?

• A) You order more breadsticks.
• B) You order more soft drinks for next week.
• C) You renovate the second floor of your building to increase the size of the dining room.
• D) You advertise for part-time workers.

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Definitions:

ROE

Return on Equity, a measure of a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Plowback Ratio

A measure indicating the proportion of earnings retained by a company for reinvestment, rather than being paid out as dividends.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Growth Opportunities

Potential situations or initiatives that could lead to business expansion, including new markets, products, or services.