Calculate the Return on Investment from the Information Given Below

question 13

Multiple Choice

Calculate the return on investment from the information given below.
Net Income = $18,000;Advertising Expenses = $220,000;Total Liabilities = $120,000;Total Assets = $160,000;Gross Margin = $80,000;Taxes Paid = $2,000

• A) 16.67 percent
• B) 15 percent
• C) 11.25 percent
• D) 12.5 percent
• E) 50 percent

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Definitions:

Dealers Day in Court Act

A U.S. law that provides automobile dealers protection against unfair practices by manufacturers.

Distributorship Franchise

A type of franchise agreement where the franchisor grants the franchisee the rights to distribute its products or services.

Trade Name

The name under which a business operates and is known to the public, distinct from the business's legal name.

License

A permit from an authority to own or use something, do a particular thing, or carry on a trade.