Sales and Average Operating Assets for Company P and Company

question 48

Multiple Choice

Sales and average operating assets for Company P and Company Q are given below: What is the margin that each company will have to earn in order to generate a return on investment of 20%?

• A)12% and 16%
• B)50% and 100%
• C)8% and 4%
• D)2.5% and 5%

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Definitions:

Criminal Negligence

Criminal negligence refers to a behavior that is recklessly disregardful of the safety or lives of others, and is characterized by a failure to exercise the care that a reasonably prudent person would under the same circumstances.

Assumption of Risk

A legal principle where an individual acknowledges and accepts the potential risks involved in an activity, which may limit their rights to claim damages in the event of injury.

Contributory Negligence

A legal doctrine that can bar or reduce a plaintiff's right to recovery if the plaintiff's own negligence contributed to the harm suffered.

Comparative Fault

A legal principle that reduces the claimant's damages award based on the percentage of their fault in contributing to their own harm.