Establishing a goal of having a net profit

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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.

(c) Gear is more effective than Cog.

(d) Gear is more efficient than Cog.

(e) Cannot tell without more information.

Reference no: EM13258199

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