How Much Profit Does a Company Which Has a Total

question 46

Multiple Choice

How much profit does a company which has a total of $5 million invested by its owners and $4 million in liabilities need to make in order to have an assets-to-liabilities ratio of 2:1?

• A) $2 million
• B) $3 million
• C) $5 million
• D) $7 million
• E) $8 million

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Definitions:

Vicarious Liability

A legal principle where one party is held liable for the actions or negligence of another party, often seen in employer-employee relationships.

Driving While Impaired

Operating a vehicle under the influence of alcohol, drugs, or other substances that hinder cognitive and motor skills.

Occupier's Liability

Legal responsibility of property owners or tenants to ensure the safety of those who enter their premises.

Federal Statute

A law enacted by the national government that applies across the entire country.