If a Company Reports Profit Margin of 31

question 85

Multiple Choice

If a company reports profit margin of 31.6% and investment turnover of 1.30 for one of its investment centers,the return on investment must be:

• A)24.3%.
• B)41.1%.
• C)32.9%.
• D)30.3%.
• E)4.11%.

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Definitions:

Observability

The degree to which the results or benefits of a product or service can be seen or recognized by others.

Relative Advantage

The degree to which a product or service is perceived as better than the existing alternatives by potential adopters.

Inkjet Printers

Printers that produce images by propelling droplets of ink onto paper, commonly used for home and office printing tasks.

Diffusion of Innovation Theory

A theory that explains how, over time, an idea or product gains momentum and spreads through a specific population or social system.