Cloverton Corporation Had Net Income of $30,000,net Sales of $1,000,000,and

question 47

Multiple Choice

Cloverton Corporation had net income of $30,000,net sales of $1,000,000,and average total assets of $500,000.Its return on total assets is:

• A)3%
• B)200%
• C)6%
• D)17%
• E)1.5%

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Definitions:

Salaried Manager

An individual in a managerial position who receives a predetermined, regular payment, typically on a monthly or bi-weekly basis, regardless of hours worked.

Profits

The financial return that exceeds the input costs associated with generating revenue, a fundamental measure of the success and viability of a business venture.

Franchise Fee

An upfront payment made by a franchisee to a franchisor for the rights to use the franchisor's brand and business model.

Shirking

The act of avoiding work or responsibilities, often covertly, within an employment context.