Which of the Following Indicates the Ability of a Company

question 107

Multiple Choice

Which of the following indicates the ability of a company to generate income from its average investment in total assets?

• A)Return on assets
• B)Return of stockholders' equity
• C)Gross profit margin
• D)Profit margin

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, typically traded on a futures exchange.

Futures Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell a futures contract at a specified price on or before a certain date.