A business should provide the owner with a reasonable rate of return based upon ________.
A)the time and money invested in the business
B)industry averages
C)the capital borrowed from the bank
D)an acceptable annual salary

Question

Quizplus · Accepted Answer

The rate of return should be based on the time and money invested by the owner, as this reflects the risk taken by the owner in starting and running the business. Industry averages, capital borrowed, or an acceptable salary may be factors to consider, but they should not be the sole basis for determining the rate of return.

A Business Should Provide the Owner with a Reasonable Rate