If Net Profit Margin Is 5

question 3

Multiple Choice

If net profit margin is 5.0 percent,rate of asset turnover is 4.0x,and financial leverage is 2.0x,then return on net worth is:

• A) 8.0 percent.
• B) 10.0 percent.
• C) 20.0 percent.
• D) 40.0 percent.
• E) 80.0 percent.

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Definitions:

Redbox

A company specializing in DVD, Blu-ray, and video game rentals via automated retail kiosks.

Form Of Ownership

The legal structure of a business, such as sole proprietorship, partnership, or corporation, which has implications for taxation, liability, and governance.

Franchise Operations

Business models where an individual or group is granted the rights to operate a business using the branding and system of an established company.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, including the management of raw materials, components, and finished products.