Which One of the Following Ratios Helps to Indicate a Company's

question 29

Multiple Choice

Which one of the following ratios helps to indicate a company's effectiveness in meeting the stockholder profitability objectives?

• A)profit margin
• B)acid-test
• C)dividend yield
• D)inventory turnover

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or country.

Technological Advance

Refers to the improvement and innovation in technology, leading to increased productivity, better products, or new methods of production.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Labor

The human effort, including physical and mental skills, employed in the production of goods and services within an economy.