Claire and Jonathan Own a Janitorial Company, Getting as Many

question 104

Multiple Choice

Claire and Jonathan own a janitorial company, getting as many contracts as they can manage. Sometimes companies do not renew their contracts due to their own insecure finances, which leaves Claire and Jonathan with less income until they can find replacement contracts. Which of the following myths about people who are poor does their situation contradict?

• A) Most poor people are immigrants.
• B) Most poor people are welfare cheats and frauds.
• C) Most poor people are lazy.
• D) Most poor people are trapped in poverty.

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Definitions:

Net Profit Margin Ratio

A profitability ratio calculated by dividing net income by net sales, showing how much profit a company makes for every dollar of its sales.

Gross Sales Revenue

the total amount of sales generated by a business before any deductions are made.

Sales Returns

Sales Returns represent the goods returned by customers to the seller, which leads to a reversal of sales revenue.

Quick Ratio

Quick Ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.