The Pathways Company Has an Asset Turnover of 3

question 112

Multiple Choice

The Pathways Company has an asset turnover of 3.0 times, using assets of $45,000. The company also has a return on investment (ROI) of 20%. If the residual income was $2,250, what was the company's cost of capital?

• A) 6.0%.
• B) 10.0%.
• C) 15.0%.
• D) 20.0%.

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Definitions:

Participative Management

A management style where employees at all levels are encouraged to contribute ideas towards identifying and solving problems, making decisions, and setting goals.

Empowerment

The process of giving people more control over their lives or the situation they are in, often by delegating power or resources.

Equality

The state of being equal, especially in status, rights, and opportunities.

Employee Wellness Programs

Initiatives and support systems provided by employers to promote health and well-being among their staff.