If Net Sales Revenue $\bold{rises}$ 5% While the Average Book Value of Fixed Assets Falls

question 38

Multiple Choice

If net sales revenue $\bold{rises}$ 5% while the average book value of fixed assets falls 5%:

• A)the fixed asset turnover ratio will rise.
• B)the fixed asset turnover ratio will fall.
• C)the fixed asset turnover ratio will stay the same.
• D)the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

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Definitions:

Power Distance

A cultural dimension that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally.

Hofstede's Dimensions

A framework for understanding cultural differences along six dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term orientation vs. short-term normative orientation, and indulgence vs. restraint.

Mercenary Culture

An organizational culture characterized by a focus on results and efficiency, often at the expense of employee loyalty and long-term commitment.

Making Money

The process of earning a profit or generating income through various means, such as employment, investment, or operating a business.