At the End of Year 1,the Following Information Is Available

question 64

Multiple Choice

At the end of Year 1,the following information is available for Grumpy,Happy,and Doc Companies.

-Which of the following ratios would be most useful in evaluating a company's performance from the owners' perspective?

• A)Return-on-assets ratio
• B)Debt-to-assets ratio
• C)Return-on-equity ratio
• D)Either the debt-to-assets ratio or the return-on-equity ratio

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Definitions:

Philanthropists

Individuals or organizations that actively seek to promote the welfare of others, typically through generous donations of money to various causes.

TEA

Total Entrepreneurial Activity; a metric used to measure the percentage of the adult working-age population who are either a nascent entrepreneur or owner-manager of a new business.

North America

A continent located entirely within the Northern Hemisphere and almost all within the Western Hemisphere, consisting of countries such as the United States, Canada, and Mexico.

Social Entrepreneurship

A form of entrepreneurship that focuses on resolving social issues and making a positive impact on society through innovative and sustainable business models.