Short Term Assets Generally Earn a Higher Rate of Return

question 21

True/False

Short term assets generally earn a higher rate of return than long-term assets, making short term assets a more desirable investment than long-term assets.

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Definitions:

Franchisor

Firm whose products are sold to customers by the franchisee.

Franchisee

Individual or business firm purchasing a franchise.

Internal Locus

A psychological term referring to the belief that one has control over their life events and outcomes rather than external forces.

Need to Achieve

An individual's desire for significant accomplishment, mastering of skills, control, or high standards.