Mirror Emporium's Sole Owner, Fred Martin, Is Happy About His

question 17

Multiple Choice

Mirror Emporium's sole owner, Fred Martin, is happy about his $100,000 profit.However, while he knows that the firm is profitable, he wants to know how effectively his investment is being used.What computation would you recommend?

• A) return on sales
• B) earnings per share
• C) return on owners' equity
• D) current ratio
• E) activity ratios

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Definitions:

Technological

Pertaining to technology, the branch of knowledge dealing with engineering or applied sciences.

North American Free Trade Agreement

A trade agreement between Canada, Mexico, and the United States designed to reduce tariff barriers and increase economic cooperation.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries and regulate trade.

Trade Embargoes

Government-imposed restrictions on the exchange of goods and services with a particular country or group of countries.