Which of the Following Identified in an Analysis of the General

question 91

Multiple Choice

Which of the following identified in an analysis of the general environment is an opportunity for an entrepreneur who wishes to open a business doing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people?

• A) the average age of the population in his community is high
• B) the level of unemployment in his community is high
• C) a chiropractor and two independent physical therapists are located in his community
• D) the average education level of the population in his community is low

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Definitions:

Earnings Rate

The rate at which an individual or corporation is taxed or the speed at which an investment grows.

Present Value Index

A ratio used in capital budgeting to evaluate the profitability of investments by comparing the present value of future cash flows to the initial investment cost.

Compound Interest

Interest that is computed on both the initial amount of the deposit or loan and on the interest that has been added to that principal over past periods.

Desired Rate of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset.