By How Much Must a Firm Reduce Its Assets in Order

question 82

Multiple Choice

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

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

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Definitions:

Unsafe Intersection

A road junction that presents a higher risk of accidents due to poor design, insufficient visibility, inadequate signage, or other factors.

Traffic Light

A signaling device positioned at road intersections, pedestrian crossings, and other locations to control flows of traffic.

Stop Signs

Signposts that instruct drivers to come to a complete halt, observe the right-of-way, and proceed with caution at intersections.

Risk of Fatality

The probability or likelihood of death resulting from exposure to a hazard or undertaking a certain activity.