Positive reputation in local community would attract new customer
Answer:
sole , partnership , team business
Answer:
Option D is correct.
Explanation:
Both company will have same Equity multiplier as total assets and equity are same of both companies. So Option A and B is incorrect.
Option C is also incorrect because there is no difference between the sales and total assets of both companies.
Option D is correct because the return on equity of the company LD is higher as the Net profit which is profit after interest and tax is higher than the profit after interest and tax of the company HD.
ROE = PAIT / Equity
Option E is wrong because when we say ROA is same this means that the operating income is same.
ROA = Operating profit / Total assets
Remember that the operating profit is earnings before interest and tax.
These are payment terms in the accounting. The first term 2/10 means that if you can pay the amount after 10 days, you would be given a 2% discount. If not, that's what the second terms means. This means you have to pay the net or full amount within 30 days.
So, if he can pay within 10 days, he will only have to give $3214.4. If not, then he would have to pay $3280 within 30 days.
