Which of the Following Is NOT Considered an Example of a Capital

question 160

Multiple Choice

Which of the following is NOT considered an example of a capital good?

• A) a miner's cap
• B) a GPS tracking device
• C) an airport kiosk
• D) a U.S. government bond
• E) a stethoscope

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Definitions:

Return on Total Assets

measures a company's efficiency in using its assets to generate profit, calculated by dividing net income by total assets.

Total Assets

The sum of all current and non-current assets owned by a company, including cash, inventory, property, and equipment.

Gross Margin Percentage

A financial metric that represents the gross margin as a percentage of total sales revenue, indicating the efficiency of a company in producing and selling goods.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price of a stock by its earnings per share, indicating the dollar amount an investor can expect to invest in a company to receive one dollar of that company’s earnings.