The Destin Company Reported Net Income of $50,000 on Sales

question 133

Multiple Choice

The Destin Company reported net income of $50,000 on sales of $300,000. The company has total assets of $500,000 and total liabilities of $100,000. What is the company's return on equity ratio?

• A)10.0%
• B)12.5%
• C)16.7%
• D)50.0%

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Definitions:

Theory Y

A management style that assumes employees are inherently motivated and responsible, favoring a participative approach.

Close Supervision

The process of overseeing employees' work and tasks very closely, with frequent monitoring and guidance.

Legislation

The act of making or enacting laws, often through a governmental body or legislative assembly.

Legal Trouble

Situations or circumstances that result in legal proceedings, disputes, or potential consequences under law.