Return on Invested Capital Is a Better Measure of Profitability

question 11

True/False

Return on invested capital is a better measure of profitability than earnings as earnings numbers fail to reflect the capital needed to generate those earnings.

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Definitions:

Classical Conditioning

An educational technique that pairs two stimuli together repeatedly; a response that at first occurs due to the second stimulus alone eventually results from the first stimulus.

Social Learning Theory

The theory emphasizing that learning occurs within a social context, and knowledge is acquired through observing others in the social environment.

Observational Learning

A method of gaining behaviors by observing and mimicking the actions of others.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, leading to changes in voluntary behavior.