Brett Runs a Lawn Care Service

question 45

True/False

Brett runs a lawn care service. Although he and his employees could service eight households in one day, he averages six yards per crewmember, per day. Brett recently restructured his work crew and provided each cutter with an incentive to acquire two new customers each month through customer referrals. As a recent business graduate, you tell him he's probably on the right track.

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Definitions:

Stock Portfolios

Collections of stocks or equities owned by an individual or institution, diversified to manage risk and investment return.

Merrill Lynch

Merrill Lynch, now under Bank of America, is a prominent global wealth management, capital markets, and advisory company.

Realized Capital Gains

Realized capital gains refer to the profits earned from the sale of an asset, like stocks or real estate, which exceed the purchase price, and are only "realized" upon the sale of the asset.

Wealth Effect

The change in spending that accompanies a change in perceived wealth, usually the result of changes in the value of assets like property or stocks.