A Business Reports the Following in Its Financial Statements Its Rate of Return on Total Assets Is:
A) 19

question 5

Multiple Choice

A business reports the following in its financial statements:
$$\begin{array} { l r } \text { Net profit before tax } & \$ 150 \\\text { Interest expense } & 20 \\\text { Income tax expense } & 30 \\\text { Total assets at the beginning of the year } & 700 \\\text { Total assets at the end of the year } & 850\end{array}$$ Its rate of return on total assets is:

• A) 19.4%
• B) 21.9%
• C) 16.8%
• D) 4.83%

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Definitions:

Strategic Alliance

A collaborative agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Defensive Merger Tactics

Strategies employed by companies to avoid being acquired against their will, including poison pills, golden parachutes, and white knights.

Unwanted Takeovers

Corporate actions where one company attempts to acquire another without the consent of the latter's management.

Ethical

Pertaining to or dealing with morals or principles of morality; pertaining to right and wrong in conduct.