If a Firm Has a Total Asset Turnover of 8

question 27

Multiple Choice

If a firm has a total asset turnover of 8 times and a return on investment of 15%, its net profit margin must be ____.

• A) 1.875%
• B) 1.95%
• C) 2.05%
• D) 2.25%

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Definitions:

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Labor Force

The total number of people, including both the employed and unemployed, who are actively seeking employment.

Adult Population

The segment of the population that is considered adult, typically based on a specific age range, often used in demographics and employment statistics.

Labor-Force Participation Rate

The percentage of the population that is either employed or actively looking for employment.