Figure 19-2
the Following Results for the Year Pertain to the Northern

question 41

Multiple Choice

Figure 19-2
The following results for the year pertain to the Northern Division of Garvey Ltd.: $\begin{array}{lr}\text { Sales } & £ 400,000 \\\text { Taxes } & 60,000 \\\text { Operating income after taxes } & 160,000\end{array}$
-Refer to Figure 19-2. If Northern's average operating assets are £1,200,000 and their minimum required rate of return is 12 per cent, what is the Northern Division's return on investment?

• A)33.3%
• B)18.3%
• C)13.3%
• D)12.0%

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Annual Meeting

A yearly gathering of a company's interested shareholders where directors report on the year's activities and shareholders vote on various issues.

Proxy

A writing signed by a shareholder that authorizes the individual named in the writing to exercise the shareholder’s votes (corresponding to his or her shares of stock) at a shareholders’ meeting.

Annual Corporate

This term refers to yearly activities and obligations a corporation must fulfill, including financial reporting and meetings.