An Asset Turnover Ratio of 2

question 97

Multiple Choice

An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates _____ in sales.

• A)$0.50
• B)$2.00
• C)$2.50
• D)$3.00

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Definitions:

Robinson-Patman Act

A United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.

False Advertising

The practice of misleading consumers through deceptive, incorrect, or unsubstantiated claims about a product or service.

Dodd-Frank

Refers to the Dodd-Frank Wall Street Reform and Consumer Protection Act, a comprehensive piece of financial reforms passed in 2010 in response to the 2008 financial crisis.

Swap Transactions

Financial agreements between parties to exchange cash flows or other financial instruments for a set period.