Return on Assets (ROA) Is the Profit Generated by the Assets

question 45

True/False

Return on assets (ROA) is the profit generated by the assets possessed by the firm.

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Definitions:

Units of Output

The quantity of product produced, serving as a measure of a firm's or industry's total production.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit, where revenue exceeds costs by the greatest amount.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.

Total Cost

The cumulative amount of money spent or resources used in the production of goods or services, including fixed and variable costs.