The SBA's Standards for Small Businesses Are Based on _______

question 24

Multiple Choice

The SBA's standards for small businesses are based on _______

• A) Number of employees and average annual revenues
• B) Average annual revenues and industry
• C) Number of employees and industry
• D) Number of employees, average annual revenues, and industry

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Definitions:

Cost of Capital

Cost of capital represents the return rate an entity must pay to its stakeholders in order to justify the use of capital in the business.

Initial Outflow

The initial cash expenditure required to undertake an investment or project.

Average Accounting Return

A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.

Straight-Line Method

An accounting method for allocating the cost of an asset evenly over its useful life.