Zenith Corporation's Net Income Is $78,400

question 37

Multiple Choice

Zenith Corporation's net income is $78,400.What is the return on investment if the amount of the investment is $500,000?

• A) 14.88%
• B) 12.78%
• C) 15.68%
• D) 16%

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Definitions:

Minority Shareholders

Individuals or entities that own less than 50% of a company's shares and therefore have limited control over company decisions.

Shareholder's Derivative Suit

A legal action brought by a shareholder on behalf of a corporation to enforce the corporation's rights when the corporation's management fails to do so.

Cumulative Voting

A voting system in corporate elections that allows shareholders to concentrate all their votes on one candidate for the board of directors.

Illegal Dumping

The improper disposal of waste at a non-approved location.