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The Management of Pasama Inc

question 99

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The management of Pasama Inc. is evaluating the three segments of the company. Given the data below, which of the following statements is true regarding segment return on assets? The management of Pasama Inc. is evaluating the three segments of the company. Given the data below, which of the following statements is true regarding segment return on assets?   A)  Segment Africa has the highest operating income and the highest return on assets. B)  Segment Belgium has the highest operating income and the highest return on assets. C)  Segment Canada has the highest operating income and the highest return on assets. D)  Segment Canada has the highest return on assets and Segment Africa has the lowest return on assets. E)  Segment Belgium has a higher return on assets than Segment Canada.


Definitions:

Competitive Price-Taker

A rephrased scenario where businesses in competitive markets accept the prevailing market price as given because they have no power to influence it.

Profit

The financial gain realized when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

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