Terra Company Has Two Divisions,the Retail Division and the Wholesale

question 88

Multiple Choice

Terra Company has two divisions,the Retail Division and the Wholesale Division.The following information was gathered for the two divisions for the current year: $$\begin{array} { l l c } & \text { Retail Division } & \text { Wholesale Division } \\\text { Operating income } & \$ 2,500,000 & \$ 6,000,000 \\\text { Operating assets } & \$ 16,000,000 & \$ 36,000,000\end{array}$$ Assuming that these are the only divisions of Terra Company,what is the ROI for the company as a whole?

• A) 15.7%
• B) 16.3%
• C) 16.6%
• D) 32.3%

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Definitions:

Forgery

The act of fraudulently making, altering, or falsifying a document or other object with the intent to deceive or defraud.

Real Defense

Legal defenses that can be used to invalidate a claim in a contract or to nullify the contract itself.

Holder In Due Course

A party that acquires a negotiable instrument in good faith and for value, and is thus protected from many defenses that could be raised against the original payee.

Consumer Credit Contract

A legal agreement between a borrower and a lender where the lender provides the borrower with credit for personal, family, or household purposes.