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

---

Definitions:

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Product-Market Growth Analysis

A technique for identifying growth opportunities by analyzing existing and potential products and markets.

Geographic Markets

Markets that are segmented or defined by geographical boundaries, which can range from local to global.

Basic Business Strategy

A foundational approach that outlines how a business aims to achieve its goals, compete in the market, and satisfy its customers.