Prepare a List of Five Knockout Factors That Would Disqualify

question 86

Essay

Prepare a list of five knockout factors that would disqualify an otherwise satisfactory retail location.Describe why each factor is important.

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Definitions:

Required Return

The minimum expected return an investor demands for an investment, reflecting its risk level.

Investment Centers

Business units or departments that are directly responsible for generating returns on assets allocated to them.

Controllable Margin

The portion of profit or margin that can be directly influenced by managing costs or expenses within a department or area.

Average Operating Assets

The average value of the assets used in the operation of a business, taken over a specific period, which may be used to evaluate the effectiveness of asset use in generating revenue.