Assume an Asset Costs $100

question 111

Multiple Choice

Assume an asset costs $100.The asset will return $5.If you purchased the asset entirely with your own money the rate of return would be ________.If you purchased the asset $10 of your own money and $90 of borrowed money the rate of return would be ________.

• A)5%; 50%
• B)50%; 5%
• C)5%; 5%
• D)5.5%; 5%
• E)5%; 11%

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Definitions:

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Patent

A legal document granted by the government, giving an inventor exclusive rights to use, make, and sell an invention for a certain period of time.

Business Process

A set of activities or tasks that organizations perform in a repeatable and systematic manner to achieve designated goals.