Most Small Businesses Are More _____ Than _____

question 28

Multiple Choice

Most small businesses are more _____ than _____.

• A) cost-directed; profit-directed
• B) imitative; innovative
• C) profit-directed; cost-directed
• D) innovative; imitative

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Definitions:

Profit Margin

A financial performance metric that measures the amount of net income earned with each dollar of sales generated by comparing net income to revenue.

Asset Turnover Ratios

Financial metrics that measure the efficiency of a company in using its assets to generate sales or revenue.

Inventory Turnover Ratio

The inventory turnover ratio is a measure of how often a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.