At the End of Year 1,the Following Information Is Available

question 64

Multiple Choice

At the end of Year 1,the following information is available for Grumpy,Happy,and Doc Companies.

-Which of the following ratios would be most useful in evaluating a company's performance from the owners' perspective?

• A)Return-on-assets ratio
• B)Debt-to-assets ratio
• C)Return-on-equity ratio
• D)Either the debt-to-assets ratio or the return-on-equity ratio

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Definitions:

Free Trade

The exchange of goods and services across international boundaries or territories without restrictions such as tariffs, duties, or quotas.

GATT

stands for the General Agreement on Tariffs and Trade, an international treaty created to reduce trade barriers and promote international trade through the reduction of tariffs and quotas.

Quantitative Restriction

A limit on the importation of certain goods that is imposed on the basis of number of units, weight, or value for national economic reason, or for the protection of domestic industry; prohibited by GATT.

Forum Non Conveniens

A legal doctrine allowing courts to dismiss a case if another court or forum is more suited to hear the case, usually due to convenience factors.