Hardcastle Ltd

question 44

Multiple Choice

Hardcastle Ltd. had sales of $3,600,000 and net operating income of $900,000. Operating assets during the year averaged $1,500,000. The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 20%. If the new machine is purchased, the company's new return on investment (ROI) would be:

• A) 190.5%
• B) 60.0%
• C) 200.0%
• D) 50.0%

---

Definitions:

Wagner Act

Also known as the National Labor Relations Act of 1935, a foundational US law that established the rights of workers to organize into unions and engage in collective bargaining.

Management and Labor

The relationship and dynamics between employers (management) and workers (labor), often involving negotiation, cooperation, and sometimes conflict.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 aimed at promoting economic competition by prohibiting monopolies, cartels, and other forms of anticompetitive business practices.

Monopolies and Trusts

Economic structures or arrangements where a single entity or a group controls a significant portion of market share, limiting competition.