Zefie Is a Mobile Application That Has Been Recently Launched

question 16

Multiple Choice

Zefie is a mobile application that has been recently launched in the market. The application becomes popular among the youth, but the usage is almost nil among the other age groups. In this case, Zelfie is experiencing a slow _____ rate.

• A) diffusion
• B) advection
• C) concentration
• D) absorption

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Definitions:

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of a company.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Du Pont Equation

A formula that breaks down the Return on Equity (ROE) into three key components: profit margin, asset turnover, and financial leverage, allowing for a deeper analysis of what drives a company's ROE.