Using the Information Provided by Tasco Sales, Calculate the Return

question 15

Multiple Choice

Using the information provided by Tasco Sales, calculate the return on investment.
Sales $1 900 000
Operating profit 30 000
Average operating assets 600 000
Shareholders' equity 50 000
Minimum required rate of return 10%

• A) 4%
• B) 9%
• C) 5%
• D) 6%

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Definitions:

Trade Secrets

A plan, process, or device that is used in a business and is known only to employees who need to know the secret to carry out their jobs.

Innocent Third-Party

An individual or entity that is not involved in a legal dispute or transaction but may be affected by its outcome.

Restrictive Employment Covenant

A promise by an employee in an employment contract not to work for anyone else in the same field of employment for a specified time period within a particular geographical area.

Employment Options

Various employment possibilities or choices available to individuals based on skills, experience, and qualifications.