Effective Management of Services Requires a Clear Focus on Understanding

question 61

True/False

Effective management of services requires a clear focus on understanding operations, so much so that it may even require the exclusion of consideration of marketing or personnel.

---

Definitions:

Financial Leverage

Applying borrowed resources to escalate the potential profits of an investment.

EPS

Earnings Per Share, a measure of a company's profitability that divides its net profit by the number of outstanding shares.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses its assets to generate profit.

ROCE

Return on Capital Employed, a financial ratio that measures a company's profitability and the efficiency with which its capital is used.