A Low Fixed Asset Turnover Ratio Often Indicates That ______

question 39

Multiple Choice

A low fixed asset turnover ratio often indicates that ______.

• A) the firm is efficiently using its current assets
• B) the firm is efficiently using its total assets
• C) the firm is keeping expenses low
• D) marketing efforts are ineffective

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Definitions:

Small Business

A privately owned and operated business, usually characterized by small number of employees and modest revenue.

Larger Business

A larger business is an expansive and typically more established enterprise, often characterized by a vast array of resources, a diverse product or service line, and a considerable employee base.

Competitive Advantage

An attribute or ability that allows an organization to outperform its competitors, often leading to greater sales or margins.

Inertia

A tendency to do nothing or remain unchanged, often leading to stagnation.