If Shareholders Want to Know How Much Profit a Firm

question 81

Multiple Choice

If shareholders want to know how much profit a firm they are making on their entire investment in the firm,the shareholders should look at the:

• A)profit margin.
• B)return on assets.
• C)return on equity.
• D)equity multiplier.
• E)earnings per share.

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Definitions:

Duty of Care

Duty of care is a legal obligation imposed on individuals to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.

Negligence Action

A legal suit filed by an individual claiming harm due to another party's failure to exercise an appropriate level of care.

Forfeiture Rule

The principle that a criminal should not be permitted to profit from a crime.

Criminal's Estate

The assets and properties owned by a criminal, which may be subject to legal action or forfeiture in the event of legal proceedings against the individual.