List the 12 Key Ratios Outlined in the Text and Explain

question 97

Essay

List the 12 key ratios outlined in the text and explain the type of information they provide the small business owner.

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Definitions:

Investments

Assets that are purchased with the expectation that they will generate income or appreciate in value over time.

8%

A percentage, often representing an interest rate, return on investment, or growth rate.

Annuity Contract

A financial product sold by financial institutions that provide a fixed stream of payments to an individual for a period of time.

8% Return

An investment objective or outcome where the investor aims to achieve an annual return of 8 percent on the invested principal.