Return on Assets Can Be a Misleading Ratio When Analyzing

question 47

Short Answer

Return on assets can be a misleading ratio when analyzing technology firms because two important assets, ______________________________ and ______________________________ do not appear on their balance sheets

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Definitions:

Practical Model

A straightforward and realistic approach or method designed to address specific problems, needs, or situations effectively.

High Validity

Refers to the extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Followers' Needs

The requirements or desires of individuals who look up to or are guided by a leader, which may influence their satisfaction and performance.

Ambiguous Task Characteristic

Describes a feature of a task that lacks clarity and can be interpreted in multiple ways, leading to uncertainty in execution.