Describe the Return on Assets Ratio and the DuPont Approach

question 74

Essay

Describe the return on assets ratio and the DuPont approach for calculating return on assets.

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Definitions:

Vicariously Liable

Legal principle where one party is held liable for the actions of a subordinate or associate due to their relationship to the wrongdoer.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a proportionate interest in the company's earnings and assets.

Tax Advantages

Financial strategies or conditions that reduce the amount of tax payable to the government.

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing limited liability and other benefits.