Last Year the Uptown Division of Gorcen Enterprises Had Sales

question 80

Multiple Choice

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000. The average operating assets at Uptown last year amounted to $120,000. Last year at Uptown the return on investment was:

• A)8%
• B)12%
• C)20%
• D)40%

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Definitions:

Conglomerate Acquisition

A type of corporate takeover where a large, multi-industry company acquires another business that may be in an unrelated industry.

Forward Acquisition

A strategy involving the purchase of a company with the aim of gaining access to its assets, technology, or market position in the future.

Stock Exchange Bid

The highest price that a buyer is willing to pay for a stock on the stock exchange at a given time.

Corporate Takeover

The acquisition of one company by another, accomplished through various means such as purchasing a majority share of the target company's stock.