If a Division Has Sales of $2,500,000,operating Profit of $250,000,and

question 60

Multiple Choice

If a division has sales of $2,500,000,operating profit of $250,000,and a division investment of $1,250,000,its return on investment is

• A)20%
• B)10%
• C)500%
• D)200%

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.

Foreign-Currency Exchange

The system through which one currency is converted into another, enabling international transactions without the impediment of differing national currencies.

U.S. Resident

An individual who lives in the United States, regardless of citizenship status, for a significant portion of the calendar year.

Government Budget Deficit

The financial situation in which a government's expenditures exceed its revenues, leading to borrowing or reducing reserves.