A Firm's Net Income for the Year Was $200,000

question 5

Multiple Choice

A firm's net income for the year was $200,000. Average assets totaled $1.5 million, and average liabilities totaled $0.3 million. Return on equity was:

• A) 13.3%.
• B) 16.7%.
• C) 10%.
• D) 20%.

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Definitions:

TQM

Total Quality Management, a systematic approach to management that seeks to improve quality and performance which will meet or exceed customer expectations.

Zero Defects

A management philosophy aiming for the reduction of defects through continuous improvement and aiming at achieving perfect products or processes.

Inspecting Everything

The practice of thoroughly examining and reviewing all components or aspects of a project, process, or system.

Crisis Management

The method an organization employs to handle a sudden and unforeseen incident that poses a risk to the organization or its stakeholders.