Examples of Elements of a Business That Commonly Make Up

question 50

Multiple Choice

Examples of elements of a business that commonly make up goodwill are:

• A) patents and licences.
• B) trademarks and brand names.
• C) research and development.
• D) established reputation and loyal customers.

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Definitions:

Common-Size Financial Statement

Financial statements that present all items in percentage terms, with each line item displayed as a percentage of a significant figure such as total sales or total assets, for comparison purposes.

Source Of Cash

A Source Of Cash refers to activities or transactions that bring money into a company, increasing its cash flow, such as operating activities, financing activities, and investing activities.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors, representing its short-term liabilities.

Gross Profit Ratio

A financial metric that shows the proportion of gross profit to sales, indicating the efficiency of production and pricing.