Skrit Corporation Has a Net Profit Margin of 15% and a Total

question 40

Multiple Choice

Skrit Corporation has a net profit margin of 15% and a total asset turnover of 1.7. What is Skrit's return on total assets?

• A) 12.3%
• B) 25.5%
• C) 8.8%
• D) 11.1%

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Definitions:

Partnership

An agreement by two or more persons to carry on, as co-owners, a business for profit.

Franchise

A business model that allows individuals or entities to operate a business using the branding and operational model of an established company.

Sole Proprietorship

A type of business entity owned and operated by one individual, with no legal distinction between the owner and the business.

Organizational Flexibility

The ability of a company or organization to adapt quickly to changes in its environment, including market trends, technologies, and internal dynamics.