Alexander Has Just Opened a Bakery & Café in a Busy

question 52

Multiple Choice

Alexander has just opened a bakery & café in a busy New York City neighborhood.He has received an SBA-guaranteed microloan of $13,000.Alexander can use the microloan for all of the following,EXCEPT:

• A)to buy a new dough mixer
• B)to pay off outstanding business-related credit card bills
• C)to pay for a new advertising campaign
• D)to pay rent and utility bills for the building

Determine profit margin ratio to assess a company's operational efficiency.

Calculate and interpret the return on common stockholders' equity to evaluate the profitability from the shareholders' perspective.

Understand the inventory and accounts receivable turnover ratios to evaluate how efficiently a company manages its stock and collects receivables.

Calculate and analyze the return on assets to measure how efficiently a company uses its assets to generate profits.

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Definitions:

Larger Organisation

An organization that is significant in size, possibly with multiple departments, a wide range of functions, and a large number of employees.

Minority Owned Business

A business that is at least 51% owned, operated, and controlled by individuals belonging to a racial or ethnic minority group.

Diversity

Describes race, gender, age, and other individual differences.

Start-Ups

Newly established businesses, often in the initial stages of operations, aiming to meet a marketplace need or solve a problem through a scalable business model.