Your Friend Brett Called to Tell You He Just Heard

question 240

True/False

Your friend Brett called to tell you he just heard a sales pitch for a new website development franchise where "he can get in for a few thousand dollars." He wants to know if you are ready to invest too. Although you lack expertise in graphic design or html programming, this should be a safe investment since it is already advertised as a franchise system. It's probably too good to pass up.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses, indicating the company's profitability.

Net Sales

The revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.

Times Interest Earned

A metric that measures a company's ability to meet its interest payments on outstanding debt.

Interest Expense

The expense an organization faces for borrowing money over a certain duration.