Match Each of the Following Terms with Its Corresponding Definition

question 30

Multiple Choice

Match each of the following terms with its corresponding definition.
-The official way a system works as described in organizational documentation.

• A)business process reengineering
• B)closed-ended questions
• C)disruptive technologies
• D)formal system
• E)informal system
• F)JAD session leader
• G)key business processes
• H)open-ended questions
• I)scribe

Understand the concept of leverage (trading on equity) and its impact on shareholder returns.

Learn how to calculate and use inventory turnover ratio to assess a company's inventory management efficiency.

Master the calculation of earnings per share (EPS) and recognize its value in gauging company profitability.

Understand the use of profitability ratios (profit margin, return on assets) in assessing overall company performance.

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Definitions:

Rule Of 72

A simple formula used to estimate the number of years required to double the invested money at a given annual rate of return, by dividing 72 by the expected rate of interest.

Compounding

Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.

Compounded Monthly

A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.