Certain Equipment Used at BidSystems Was Not Up to Code

question 14

True/False

Certain equipment used at BidSystems was not up to code and could lead to serious injury. While certain employees were aware of this, they did notify their managers. An OSHA inspector discovered the violation, and determined that management had the responsibility to conduct internal audits, which it did not, and therefore should have known about this. Under OSHA, BidSystems has committed a willful violation.

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Definitions:

Du Pont Identity Method

A technique for analyzing a company's financial performance by examining its efficiency, leverage, and profit margins.

Profit Margin

Profit Margin represents the percentage of revenue that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales revenue.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its equity investments to generate profit.