Establishing a goal of having a net profit

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Reference no: EM13258199

You invested $5,000 in the Cog Corporationand $5,000 in the Gear Corporation. Both of these corporations have $100 million in total assets. The Cog Corporation had a net profit of $5 million and the Gear Corporationhad a net profit of $10 million. You read their annual reports and both companies had established a goal of having a net profit equal to 15% of total assets:

(a) Cog is more effective than Gear.

(b) Cog is more efficient than Gear.

(d) Gear is more efficient than Cog.

(e) Cannot tell without more information.

Reference no: EM13258199

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