It Is More Valuable for Businesses to Focus on Increasing

question 1

Multiple Choice

It is more valuable for businesses to focus on increasing revenues,rather than reduce expenses,in order to maximize profit.For this reason,the __________ is the most important budget.

• A)revenue budget
• B)expense budget
• C)capital expenditures budget
• D)financial budget

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Definitions:

S&P 500 Index

A market-capitalization-weighted index of the 500 largest U.S. publicly traded companies and is considered one of the best representations of the U.S. stock market.

Sharpe Measure

A metric for calculating risk-adjusted return, measuring excess return per unit of deviation in an investment.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.

Sharpe Measure

A metric used to assess the risk-adjusted return of an investment, comparing its excess returns to the volatility experienced.