What Kind of Information Does the Rate of Return on Ordinary

question 44

Multiple Choice

What kind of information does the rate of return on ordinary shareholders' equity provide?

• A)How much profit each shareholder makes when he sells his shares
• B)What proportion of each dollar of sales revenue generates profit
• C)How much inventory is returned by customers
• D)How much profit a company generates relative to its shareholders' equity

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Definitions:

Social Entities

Groups, organizations, or institutions composed of individuals that interact in complex ways and have a collective goal or identity.

Physical Capital

Tangible assets of a business that are used in the production process, such as machinery, buildings, and equipment.

Social Inventions

Innovations in the social realm that change or influence the way societies operate, interact, or govern themselves.

Physical Assets

Tangible resources or possessions that have value and are owned by an individual or organization, such as buildings, machinery, or land.