ZeroFued's Net Income for the Year Was $300,000

question 14

Multiple Choice

ZeroFued's net income for the year was $300,000.Average assets totaled $2 million, and average liabilities totaled $500,000.Return on equity (ROE) was:

• A)12%
• B)15%
• C)20%
• D)60%

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Definitions:

Nonprice Competition

Strategies companies use to attract customers that do not involve changing the price of goods or services, such as advertising and product differentiation.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount consumers are willing to buy at various prices.

Elasticity Coefficient

A measure that indicates how much the quantity demanded of a good or service changes in response to a change in price.

Average Revenue

The revenue a company receives for selling one unit of a product, or the total revenue divided by the quantity of products sold.