Use the Following Information for the Next 4 Questions

question 62

Multiple Choice

Use the following information for the next 4 questions.
Teresa's Taco Co. had the following results during the most recent year: Sales $500,000; Residual income $5,000; investment turnover 2.5; and a required rate of return of 15%.
-The operating (pretax) income was

• A) $30,500
• B) $192,500
• C) $35,000
• D) $16,250

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Definitions:

Employment Relationships

The professional relationship between an employer and its employees, including rights, responsibilities, and obligations.

National Labor Relations Act

A foundational statute in United States labor law that guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Labor Organizing

The effort by workers to form, join, or assist a union to represent their collective interests in the workplace.

National Labor Relations Board

A federal agency in the United States that oversees labor practices, ensuring the rights of employers and employees under labor laws.