Small Businesses, According to the Small Business Administration, Employ More

question 73

True/False

Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States and are responsible for 85 percent of all business innovations.

---

Definitions:

Market-To-Book Ratio

A financial ratio that compares a company's market value to its book value, indicating how much investors are willing to pay above the net asset value.

Price-Earnings Ratio

A valuation metric for a company, calculated as market value per share divided by earnings per share.

Book Value

The net value of a company's assets, subtracting the total liabilities from the total assets, often used to assess a company's financial health.

Net Present Value

This represents the discrepancy between what cash comes in at its current value and what cash goes out at its current value over an allocated period.