Lenders Use Operating Income Specifically

question 4

Multiple Choice

Lenders use operating income specifically

• A)as a measure of how well management achieved sales.
• B)as an indication of future sales.
• C)as a measure of how much debt a business can support.
• D)as an indication of a business's ability to control costs.

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Definitions:

Base Salary

The initial rate of compensation that an employee receives in exchange for services, excluding any extra bonuses, benefits, or overtime.

Commission Rate

A percentage or fixed fee added to transactions, typically in sales or financial services, as a form of compensation.

Average Gross Earnings

The average total amount of income earned by individuals or entities before any deductions or taxes are applied.

Base Salary

The initial rate of compensation given to an employee, excluding any bonuses or benefits.