Widget Co and Tools Inc -Which of the Following Statements Is the Most Plausible Explanation

question 76

Multiple Choice

Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below are selected data:
$\begin{array}{lll}&\text { Widget Co. }&\text { Tools Inc. }\\\text { Net operating assets/common equity } & 1.37 & 1.53 \\\text { Net operating profit margin } & 19 \% & 21 \% \\\text { Income tax rate } & 47 \% & 28 \% \\\text { Revenues/net operating assets } & 0.81 & 0.61 \\\text { EBIT/revenues } & 38 \% & 32 \%\end{array}$
-Which of the following statements is the most plausible explanation of the difference in observed net operating profit margins?

• A)Widget Co's lower financial leverage
• B)Widget Co uses LIFO and Tools uses FIFO
• C)Widget Co's lower tax rate
• D)Widget Co's net operating asset turnover

Understand the evolution of Freud's career from a neurologist to a psychoanalyst.

Grasp the concept of wish fulfillment and its role in Freudian theory.

Recognize the impact of Freudian theory on the understanding of human behavior and psyche.

Understand the concept of defense mechanisms according to Freud.

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Definitions:

Bonus System

A rewards program typically implemented within organizations to provide additional compensation or incentives to employees based on their performance.

External Support and Recognition

This refers to the acknowledgment and aid received from outside an individual's or organization's immediate environment, which boosts morale and resources.

Negotiating Upward

The process of effectively communicating and advocating for one's interests or needs to higher levels of an organization's hierarchy.

External Environmental Leadership Action

Leadership actions or decisions that are influenced by or respond to external environmental factors, such as market trends, economic conditions, or regulatory changes.