Division M of Tenist Company Has a Rate of Return

question 1

Multiple Choice

Division M of Tenist Company has a rate of return on investment of 20% and a profit margin of 13%.What is the investment turnover?

• A)3.6
• B)1.5
• C)5.0
• D).7

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Definitions:

Tax Avoidance

The legal practice of structuring financial affairs to minimize tax liabilities without violating the law.

CRA

The Canada Revenue Agency (CRA) is a governmental agency that administers tax laws for the Canadian federal government and for most provinces and territories.

Financing Decision

The decision-making process regarding the best way to acquire necessary funds to invest in long-term assets.

Investment Decision

The process of evaluating and selecting from among available investment opportunities, considering financial resources and risk tolerance.