There Is a Relatively Small Amount of Capital Required to Enter

question 39

Multiple Choice

There is a relatively small amount of capital required to enter:

• A) the private carriage business
• B) the truckload industry
• C) The pickup and delivery sector
• D) The line haul sector

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced inventory over a given period.

Fixed-Asset Turnover

A financial ratio that measures a company's ability to generate sales from its fixed assets.

ROA

Return on Assets; a financial ratio indicating how profitable a company is relative to its total assets.