A Firm with Sales of $1,000,000, Net Income After Taxes

question 24

Multiple Choice

A firm with sales of $1,000,000, net income after taxes of $30,000, total assets of $1,500,000, and total liabilities of $750,000 has a return on equity of

• A) 4 percent.
• B) 15 percent.
• C) 20 percent.
• D) 3 percent.

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Definitions:

Systematic Difference

Differences between groups or conditions that are consistent, predictable, and attributable to a specific cause or intervention in a study.

Population

In research, population refers to the entire group of individuals or instances about whom the study is making conclusions, from which a sample can be drawn for analysis.

Observations

The action or process of observing something or someone carefully or in order to gain information.

Scores

Numerical values assigned to individuals or items based on performance, assessment, or evaluation criteria.