The Goal of Accumulating Capital Is to Allow an Individual

question 220

Multiple Choice

The goal of accumulating capital is to allow an individual to

• A) buy the things that satisfy present wants and needs.
• B) have funds available to invest.
• C) buy now, pay later.
• D) establish a good credit rating.

---

Definitions:

Return On Sales Ratio

A financial metric that calculates how efficiently a company is generating profits from its revenue, by dividing operating profit by net sales.

Financial Statements

Formal records that outline the financial activities and condition of a business, individual, or other entity.

Common Shares

Equity shares that represent ownership in a company, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Fixed Asset Turnover Ratio

A financial indicator that measures a company's ability to generate net sales from fixed-asset investments, specifically property, plant, and equipment.