The Question "What Are Your Assets and Net Worth?" Relates

question 47

Multiple Choice

The question "What are your assets and net worth?" relates to

• A) Character.
• B) Capacity.
• C) Capital.
• D) Collateral.
• E) Conditions.

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Definitions:

Average Operating Assets

A measure of the investment needed to generate the operating income of a company, averaged over a period.

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment relative to its cost.

Residual Income

The income that remains after all personal debts and expenses have been paid from one's net income.

Minimum Required Rate

The lowest acceptable return on investment required by an investor or manager.