Division I of Norris Company Has a Rate of Return

question 102

Multiple Choice

Division I of Norris Company has a rate of return on investment of 28% and a profit margin of 20%. What is the investment turnover?

• A) 3.6
• B) 1.4
• C) 5.0
• D) .7

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued or suing in its own name.

Accounting Purposes

The specific reasons or objectives for maintaining financial records and conducting financial analyses, including compliance, reporting, and decision-making.

Legal Purposes

Activities or actions that are undertaken in accordance with law and designed to effectuate legal ends.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its business or to pay debt.