What Effect Will Transaction (A)have on the Net Profit Margin

question 120

Multiple Choice

What effect will transaction (a) have on the net profit margin and debt-to-assets ratios?

• A)Net profit margin will increase and debt-to-assets will decrease.
• B)Net profit margin will decrease and debt-to-assets will increase.
• C)Both ratios will decrease.
• D)Both ratios will increase.

---

Definitions:

Organizational Behavior

The study of human behavior in organizational settings, focusing on individual, group, and structural dynamics to improve organizational effectiveness.

Ethics

Ethics refers to the moral principles that govern an individual's behavior or the conducting of an activity, emphasizing what is right or wrong.

Intellectual Capital

The value of an organization's collective knowledge, skills, inventions, or capabilities, which contributes to its competitive advantage.

Organizational Citizenship

Voluntary behaviors exhibited by employees that are not part of their formal job requirements but contribute to the overall effectiveness of the organization.