Small-Business Owners Want to Determine Whether Their Companies Meet the Standards

question 79

Multiple Choice

Small-business owners want to determine whether their companies meet the standards for small-business designation because

• A) they do not have to pay taxes on their profits.
• B) government agencies offer benefits designed to help and protect the interests of small businesses.
• C) incorporation is easier for them.
• D) banks are more likely to grant them loans.

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Definitions:

WACC

Stands for Weighted Average Cost of Capital, a calculation used to assess the cost of a company's financing including equity and debt.

WACC

The Weighted Average Cost of Capital measures a firm’s cost of capital, weighting each type of capital according to its proportion.

Project Evaluation

Project evaluation involves assessing a project's viability and effectiveness in achieving its objectives, often considering factors like cost, time, and potential returns.

Single Source

The practice of obtaining a particular product, service, or component from a single supplier, making the supplier the exclusive provider.