Return on Investment Is Equal to Profit Margin

question 4

Multiple Choice

Return on investment is equal to profit margin:

• A) Times asset turnover
• B) Divided by asset turnover
• C) Plus asset turnover
• D) Minus asset turnover

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Definitions:

Rustbucket

A derogatory term for a vehicle or ship that is old, in poor condition, and often rusty.

Used Cars

Pre-owned vehicles that have been previously registered and are available for sale, often at a lower price than new cars.

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable prices.

Lemons

In economics, "lemons" refer to products of significantly lower quality that are sold alongside higher-quality products due to asymmetric information between buyers and sellers.