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Bonuses at DSR Industries cannot be awarded unless profits

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Senior Manager
Senior Manager
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Joined: 19 Feb 2004
Posts: 415
Location: Lungi
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Bonuses at DSR Industries cannot be awarded unless profits [#permalink] New post 07 Apr 2004, 05:58
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

67% (01:39) correct 33% (00:00) wrong based on 4 sessions
Bonuses at DSR Industries cannot be awarded
unless profits exceed a ten percent return on stock-
holders' investments in the company. Higher profits
mean higher bonuses. Therefore, bonuses in a year
of general economic recession will be considerably
lower than bonuses in a year of peak profits at
DSR.

The conclusion above depends on the assumption that
(A) the firm will have relatively low profits in reces-
sion years
(B) the amount represented by a ten percent return
on stockholders' investments in the company
will increase from year to year
(C) profits rarely exceed a ten percent return on
stockholders' investments in the company
(D) profits in excess of a ten percent return on
stockholders' investments in the company are
all distributed in the form of bonuses
(E) bonuses at DSR never drop to zero
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 [#permalink] New post 07 Apr 2004, 07:46
obviously, A :)
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Paul

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 [#permalink] New post 07 Apr 2004, 11:44
A I guess.

The profits are relatively low and are above 10%
  [#permalink] 07 Apr 2004, 11:44
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