The Profitability Index Is the Ratio Of

question 15

Multiple Choice

The profitability index is the ratio of:

• A) average net income to average investment.
• B) internal rate of return to current market interest rate.
• C) net present value of cash flows to internal rate of return.
• D) net present value of cash flows to return on equity.
• E) present value of cash flows to initial investment cost.

Learn the ethical implications of communication within a professional setting.

Understand the different directions of organizational communication (upward, downward, lateral, diagonal).

Distinguish between situations suitable for oral vs. written communication.

Recognize the importance and methods of feedback in effective communication.

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Definitions:

Ease of Formation

The simplicity and straightforwardness associated with establishing a new enterprise or legal entity, typically influenced by the regulatory and legal environment.

Single Tax

A system in which only one type of tax is levied, often proposed to simplify tax systems.

Small Business Administration (SBA)

A U.S. government agency that provides support to entrepreneurs and small businesses, including loans and grants.

Loan Guarantees

Agreements in which a guarantor, usually a government or financial institution, agrees to pay back a loan if the borrower defaults.