If Income from Operations for a Division Is $6,000,invested Assets

question 54

True/False

If income from operations for a division is $6,000,invested assets are $25,000,and sales are $30,000,the investment turnover would be 5.0.

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Definitions:

Incorporated

The process of legally declaring a corporate entity as separate from its owners, providing it with certain legal rights and responsibilities.

Veil Will Be Pierced

A legal principle that allows for the corporate structure to be disregarded, exposing the shareholders to personal liability, typically in cases of fraud or when the corporation is a sham.

Separate Legal Entities

A status whereby a business is legally considered an independent entity from its owners, allowing it to own property, incur debt, sue, and be sued.

Minimum Contacts Test

A legal standard used to determine whether it is appropriate for a court in one jurisdiction to assert personal jurisdiction over a defendant from another jurisdiction.