Which of the Following Is Not Considered to Be a Profitability

question 74

Multiple Choice

Which of the following is not considered to be a profitability ratio?

• A) profit margin
• B) times interest earned
• C) return on equity
• D) return on assets (investment)

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Definitions:

Shareholders

are individuals or entities that own shares in a corporation, giving them a stake in the company's ownership and sometimes influencing its governance.

Illegal Dividend

A dividend declared and distributed by a company when it is not legally permissible to do so, either due to financial insolvency or violation of statutory requirements.

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the company's stock and potentially benefiting from its profits in the form of dividends.

Preemptive Right

A shareholder’s option to purchase new issuances of shares in proportion to the shareholder’s current ownership of the corporation.