Goods and Services Are Classified as Either Consumer or Business,depending

question 6

Multiple Choice

Goods and services are classified as either consumer or business,depending on the

• A)amount of service required on the item
• B)buying motives of the purchasers
• C)cost of the particular item
• D)purchasers of the particular item as consumers or businesses

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Definitions:

Present Value

A calculation that determines the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Compound Interest

This refers to the method of calculating interest where it is applied not only to the original sum but also to the interest that has been accrued over earlier periods for a given deposit or loan.

Earnings Rate

The rate at which a company or an investment generates income or profit, typically expressed as a percentage of the investment's cost or the company's equity.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, representing the interest rate at which the net present value of costs and benefits of the investment equals zero.