Chou Co Has a Net Income of $43,000, Assets at the the Beginning

question 41

Multiple Choice

Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.

• A) 8.4%.
• B) 1.5%.
• C) 17.2%.
• D) 14.3%.
• E) 15.6%.

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Definitions:

Intersection

The point at which two or more lines, streets, or elements meet or cross.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market have no incentive to enter or exit because they are earning normal profit.

Monopolistically Competitive Industry

An industry characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for competition among firms.