A Normal Rate of Return Refers to the ________ That

question 257

Multiple Choice

A normal rate of return refers to the ________ that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested.

• A)minimum amount
• B)maximum amount
• C)total amount
• D)profit

---

Definitions:

Past Transactions

Historical financial activities that have occurred and been recorded within a business.

Defined Contribution Plans

A type of retirement plan in which the employer, employee, or both make contributions to an individual's retirement account, with future benefits depending on the investment's performance.

401k Plan

A retirement savings plan sponsored by an employer that allows employees to save and invest a piece of their paycheck before taxes are taken out.

Vacation Pay Expense

Represents the cost to an employer for employees' earned but not yet taken vacation time, recognized as a liability.