During Cummings Most Profitable Year Its Net Income Was $25,000

question 2

Multiple Choice

During Cummings most profitable year its net income was $25,000.What is the ROI if the investment was $50,000?

• A) 28%.
• B) 50%.
• C) 51%.
• D) 63%.

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Definitions:

Capital Contribution

The sum of money or assets that the owners or shareholders provide to a company for its use in business operations.

Contribution

The act of providing a partial payment or service by a party among others towards a common goal or to make up for a joint liability.

Limited Partnership

A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners, there are one or more limited partners who have limited liability to the extent of their investments and do not participate in the management of the business.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.