If the Rate of Return on Assets for the Year

question 140

Multiple Choice

If the rate of return on assets for the year is 15%, a general interpretation of the ratio would be

• A)the assets generated $0.15 cash per dollar of cash invested.
• B)15% of the assets produced income while the remainder were at break-even for the year.
• C)before payment for use of capital, $0.15 was earned for each dollar of assets used by the company.
• D)dividends of $0.15 per share were paid.
• E)before payment for use of capital, $0.15 was earned for each dollar of cash used by the company.

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Definitions:

Merit Pay

A form of compensation where employees receive additional pay or bonuses based on their performance and achievements, as determined through evaluations or assessments.

Performance Management System

A systematic approach used by organizations to improve and manage employee performance.

Performance Bonus

Additional financial compensation awarded to employees based on an evaluation of their work performance, often related to achieving specific targets or goals.

Gainsharing

A reward system where employees receive financial benefits from improvements in the company’s performance, encouraging collaboration and efficiency.