A Firm Has a Return on Equity of 20% and a Total

question 28

Multiple Choice

A firm has a return on equity of 20% and a total asset turnover of 4.Assuming a debt ratio of 50% and sales of $1 000 000, calculate net profit.

• A)$25 000
• B)$50 000
• C)$75 000
• D)$100 000

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Definitions:

Systems Theory

An interdisciplinary theory that studies complex systems in various fields and seeks to understand their behavior, interrelations, and properties.

Multinational Approach

A strategy used by businesses that operate in multiple countries, adapting operations, products, and marketing strategies to local conditions and cultures.

Universal Process Approach

A theory in management that assumes all organizations, regardless of their specific nature, follow the same fundamental principles.

Systems Approach

A way of analysis that studies the entity as an integrated and interacting system of components or variables to address complexities.