You Invested $5,000 in the Cog Corporation and $5,000 in the Gear

question 55

Multiple Choice

You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in total assets. The Cog corporation had a net profit of $5 million and the Gear corporation had a net profit of $10 million. You read their annual reports and both companies had established a goal of having a net profit equal to 15% of total assets.

• A) Cog is more effective than Gear.
• B) Cog is more efficient than Gear.
• C) Gear is more efficient than Cog.
• D) Gear is more effective than Cog.
• E) Cannot tell without more information.

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Definitions:

NAAQS

The National Ambient Air Quality Standards, regulations that establish allowable concentration levels of pollutants in the air in the United States.

SIP

An acronym that can refer to several concepts, including Systematic Investment Plan, which allows investors to contribute small amounts periodically into a mutual fund.

EIS

An Environmental Impact Statement, a document prepared to describe the effects for proposed activities on the environment, often required for major projects to assess their environmental consequences.

Federal Agency

A government body in the United States created by the Congress to enforce laws and regulations in a specific area of responsibility.