Define the Return on Total Assets and Explain How It

question 74

Essay

Define the return on total assets and explain how it is used to measure a company's financial performance.

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Definitions:

Imports

Goods and services brought into a country from abroad for sale.

Exports

Domestically produced goods and services sold in other countries.

Comparative Advantage

A theory in economics that suggests a country should specialize in producing and exporting goods in which it has a lower opportunity cost than its trading partners.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors when using the same amount of resources.