A Firm Has an Asset Turnover of 3 Times and a Net

question 18

Multiple Choice

A firm has an asset turnover of 3 times and a net profit margin of 4%.In the next year its margin decreases to 2%.This is not necessarily bad if

• A)asset turnover increases to at least 6 times
• B)asset turnover decreases to 1.5 times
• C)asset turnover doesn't change
• D)gross margin increases enough to offset the decrease in net profit margin

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Definitions:

Menarche

The beginning of menstruation.

Pituitary Hormones

Regulatory substances produced by the pituitary gland, playing crucial roles in growth, reproductive functions, and metabolism.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and the promotion of secondary sexual characteristics.

Testes

The male reproductive glands that produce sperm and hormones, including testosterone.