Financial Objectives Generally Are Not Concerned with

question 114

Multiple Choice

Financial objectives generally are not concerned with

• A)receiving a bond rating of AA or higher.
• B)achieving a return on equity greater than 10 percent.
• C)increasing revenues at a pace greater than the rate of inflation.
• D)raising earnings per share by 2 percent.
• E)achieving a market share of 9 percent.

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Definitions:

Retailers

Businesses that sell goods or services directly to consumers.

FOB Shipping Point

A term used in shipping indicating that the buyer assumes ownership and the risk of loss of goods once the seller ships the product.

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the items reach the buyer's specified location.

Net Sales

Total sales revenue after deducting returns, allowances for damaged or missing goods, and discounts.