Sales and Average Operating Assets for Wyeth Company and Genesis

question 22

Multiple Choice

Sales and average operating assets for Wyeth Company and Genesis Company are given below:
$\begin{array}{lllr}&&\text { Average }\\&&\text { Operating }\\&\text { Sales }&\text { Assets}\\\text { Wyeth Company } & \$ 20,000 & \$ 8,000 \\\text { Genesis Company } & \$ 50,000& \$ 10,000\end{array}$


What is the margin that each company will have to earn in order to generate a return on investment of 20%?

• A) 12% and 16%.
• B) 50% and 100%.
• C) 8% and 4%.
• D) 2.5% and 5%.

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Definitions:

Utilitarians

Philosophers or adherents of the ethical theory called utilitarianism, which holds that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number.

Inherently Moral

Pertaining to actions, objects, or decisions considered to possess moral qualities by their very nature.

Early Consequentialist

Refers to philosophical thinkers or theories in the history of ethics that judge the rightness or wrongness of an action by its consequences or outcomes, predating modern consequentialism like utilitarianism.

Jeremy Bentham

A British philosopher, jurist, and social reformer regarded as the founder of modern utilitarianism.