A Firm Has Total Assets of $800,000 and Total Liabilities

question 58

Multiple Choice

A firm has total assets of $800,000 and total liabilities of $200,000. If profit after tax and interest is $150,000, the return on shareholders' funds is:

• A)25%.
• B)8%.
• C)12.5%.
• D)9%.

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Definitions:

Hidden Profile

A situation in group decision-making where the optimal solution is only apparent when non-shared information from all members is compiled.

Information Dependence

The extent to which individuals or organizations rely on others for obtaining information.

Motorcycle Convention

A large gathering or event where motorcycle enthusiasts, manufacturers, and vendors come together to showcase, discuss, and celebrate motorcycle culture and technology.

Common Information Effect

A group decision-making bias where shared information is given more importance than unshared or unique information during discussions.