The Ratio Which Is Considered to Be the Best Measure

question 36

Multiple Choice

The ratio which is considered to be the best measure of overall profitability when judging the performance of internal management is:

• A) return on total assets.
• B) return on ordinary shareholders' funds.
• C) gross profit margin.
• D) net profit margin.

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Definitions:

Action Identification Theory

The theory that explains how people conceive of action—their own or others’—in ways that range from very concrete to very abstract.

Concrete Descriptions

Detailed and specific account of objects, events, or situations, often allowing for more tangible understanding and communication.

Abstract Descriptions

Expressions or explanations that do not refer to concrete objects or specific examples but instead to ideas or concepts.

Mental Process

Refers to the internal, covert activities of our minds, such as thinking, feeling, and remembering.