Tom's Tool Factory Is an Investment Center and Is Responsible

question 87

Multiple Choice

Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. What is the return on investment?

• A) 57.9%
• B) 172.3%
• C) 5.0%
• D) 115.0%

---

Definitions:

Entrepreneur

A person who organizes, operates, and assumes the risk for a business venture, often introducing new products, services, or business processes.

Short-Term Loans

Financial borrowing intended to be repaid within a short period, usually less than a year.

Discounted Present Value

A method of valuing a future amount of money by applying a discount rate to adjust for time and risk.