Gatto Production Services Started the Year with Total Assets of $120,000

question 34

Multiple Choice

Gatto Production Services started the year with total assets of $120,000 and total liabilities of $65,000.The revenues and the expenses for the year amounted to $110,000 and $50,000,respectively.During the year,the company did not issue any common stock,but it distributed dividends of $70,000.Calculate Gatto's net income for the year.

• A)$60,000
• B)$110,000
• C)$50,000
• D)$120,000

Identify the attributes of resources and capabilities that lead to sustainable competitive advantages.

Understand modern strategic management theories regarding the best competitive advantages.

Know the strategic importance of value chain activities and how they vary by industry.

Learn about the characteristics that do not lead to sustainable competitive advantages.

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Definitions:

Put Contract

A financial contract that gives the holder the right, but not the obligation, to sell a certain amount of an underlying asset at a specified price within a specific time period.

Stock Price

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.

American Call Option

A type of options contract that gives the holder the right, but not the obligation, to buy a specified asset at a specified price on or before a specified date.

Risk-Free Interest Rate

The rate of return on an investment with no risk of financial loss, typically represented by the yield on government securities.