A Firm Has Total Assets of $800,000 and Total Liabilities

question 20

Multiple Choice

A firm has total assets of $800,000 and total liabilities of $200,000. If profit after tax and interest is $120,000, the return on shareholder's funds is:

• A) 12.5%.
• B) 9%.
• C) 20%.
• D) 8%.

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Definitions:

Organizational Change

The process by which organizations adapt to external or internal pressures by modifying their structures, strategies, processes, or cultures.

Organization's Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or institution.

Lack Of Resources

A situation where the necessary tools, materials, or assets are not available, potentially hindering achievement or progress.

Modified Routines

Adjustments or changes made to standard practices or procedures to improve efficiency, accommodate new conditions, or address emerging problems.