An Asset Turnover Ratio of 2

question 48

Multiple Choice

An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ______ in sales.

• A) $2.00
• B) $2.50
• C) $3.00
• D) $0.50

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Definitions:

Limited Proprietorship

Likely referring to a Limited Partnership, a structure where there are one or more general partners with unlimited liability, and limited partners with liability restricted to their investment.

Corporate Treasurer

A senior executive responsible for managing the investment and financing activities of a corporation, including liquidity management and financial risk.

Tax Management

Strategic planning aimed at minimizing liability and optimizing efficiency in tax obligations.

Credit Management

The process of granting credit, setting the terms it's granted on, and recovering this credit when it's due.