Profitability Ratios Measure

question 69

Multiple Choice

Profitability ratios measure:

• A)how efficiently a firm uses its assets to generate sales.
• B)how much debt the firm is using relative to other sources of financing.
• C)how much operating income or net income a firm is able to generate relative to its assets,equity,and sales.
• D)the speed with which a company can turn its short-term assets into cash to pay off its short-term debts.
• E)the performance of the firm relative to others on a per-share basis.

---

Definitions:

Social Learning Theory

A theory that posits individuals learn new behaviors and attitudes through observation of others and interactions within their social context.

Alderfer's ERG Theory

A human needs theory in organizational behavior that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Diminishing Marginal

refers to the principle in economics where each additional unit of input results in a smaller increase in output, commonly applied in the context of production and utility.

Marginal Productivity

The additional output produced as a result of employing one more unit of a factor of production.