Explain under what circumstances each of the following concepts of capital might be chosen as the denominator

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Explain under what circumstances each of the following concepts of capital might be chosen as the denominator of a ratio measuring overall profitability. For each of the concepts of capital, identify the appropriate definition of profit to be used as numerator:

(a) total assets, including fixed assets at gross cost ;

(b) total assets, including fixed assets at net cost;

(c) total net assets, i.e., total assets less total liabilities.

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