Which of the Following Questions Is NOT Needed Before Deciding

question 89

Multiple Choice

Which of the following questions is NOT needed before deciding how and when to make a major purchase?

• A) Do I have the cash I need for the down payment?
• B) Does the purchase fit my budget?
• C) Could I postpone the purchase?
• D) Could I use the credit I need for this purchase in some better way?
• E) All of these questions should be considered

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Definitions:

Profitability

The ability of a business to earn a profit, which occurs when revenues exceed the costs and expenses involved in operating the business.

New Customers

Individuals or organizations that have recently started purchasing goods or services from a business, expanding the business's client base.

Profitability Metrics

Financial measures used to assess a company's ability to generate profit relative to its revenue, assets, or equity.

Gross Margin

A financial metric that represents the difference between revenue and the cost of goods sold, expressed as a percentage of revenue, indicating the efficiency of a company in managing its production costs.