If Management Wishes to Measure How Effectively the Assets Were

question 78

Multiple Choice

If management wishes to measure how effectively the assets were used in generating a profit, they could use the:

• A) rate of return on total assets.
• B) rate of return on common stockholders' equity.
• C) return on sales.
• D) times interest earned.

---

Definitions:

International Marketing Agreement

An arrangement between parties from different countries to promote and distribute a product or service globally.

Cournot Duopolists

Firms in a duopoly (a market with only two producers) that set their output levels independently to maximize profits, anticipating the other's response.

Inverse Demand

A representation of demand that shows how the quantity demanded of a good or service varies inversely with price.

Total Cost

The sum of fixed and variable costs incurred by a business in producing a particular level of output.