All of the Following Are Appropriate Questions You Could Ask

question 108

Multiple Choice

All of the following are appropriate questions you could ask before making a major purchase except

• A) Is it possible to delay the purchase or to do without the item?
• B) Should I pay for the item with cash or buy it on credit?
• C) Which brands should I consider?
• D) How do the price, quality, and service compare at different stores?
• E) All of these are questions that should be asked.

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Definitions:

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends.

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing its financial leverage or debt.

Net Income

Represents the company's total earnings, reflecting the company's profit after all costs and taxes have been subtracted from revenues.