Which of the Following Is an Example of Roundabout Production

question 123

Multiple Choice

Which of the following is an example of roundabout production?

• A)Paul pays Ringo to wash his car.
• B)A church has a bake sale to raise money for a new narthex.
• C)Jane saves her money to buy a stereo.
• D)Robinson Crusoe makes a fish net to help him catch more fish per day.
• E)Business owners in Minneapolis buy blocks of Minnesota Twins baseball tickets to help guarantee that the team will stay in town.

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Definitions:

Return on Equity Ratio

A financial ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Financial Statements

Formal records of the financial activities and condition of a business, entity, or individual, including balance sheet, income statement, and cash flow statement.

ROA

Return on Assets, a financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficient management is in using assets to generate earnings.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.