By How Much Must a Firm Reduce Its Assets in Order

question 12

Multiple Choice

By how much must a firm reduce its assets in order to improve ROA from 10% to 12% if the firm's operating profit margin is 5% on sales of $4 million?

• A) $240,000
• B) $333,333
• C) $400,000
• D)$516,167

---

Definitions:

Common Traits

Characteristics or attributes that are shared among a group of people or objects.

Leadership Success

Achieving desired results and objectives through effective guidance and inspiration of others.

Intelligence

The capacity for learning, understanding, and applying knowledge, as well as the ability to reason and solve problems.

Honesty

Refers to the quality of being truthful, sincere, and free of deceit or fraud.