Indigo Would Like to Know How Effectively It Uses Resources

question 82

Multiple Choice

Indigo would like to know how effectively it uses resources to generate profits. Which of the following ratios would Indigo use?

• A) current assets ÷ current liabilities
• B) net profit after taxes ÷ total investment
• C) net revenue after taxes ÷ revenue
• D) sales ÷ total assets

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Definitions:

Participant Observation

A method used in social sciences where researchers immerse themselves in a community or situation to observe and participate in its activities, gaining an insider's perspective.

Random Assignment

A technique used in experiments to ensure that each participant has an equal chance of being placed in any group.

Descriptive Statistics

Statistics that summarize, organize, and simplify data to describe its main features without drawing conclusions beyond the data itself.

Sampling

The process of selecting a subset of individuals, objects, or observations from a larger population to make inferences about the whole.