Which One of the Following Statements About Benchmarking Is TRUE

question 86

Multiple Choice

Which one of the following statements about benchmarking is TRUE?

• A) Benchmarking is the same as the plan- do- check- act cycle in continuous improvement.
• B) Because of the power of benchmarking, specific plans of action are not necessary.
• C) Benchmarking is only useful when a company compares itself against other companies.
• D) Benchmarking focuses on setting quantitative goals for continuous improvement.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Return On Equity

A measure of a corporation's profitability, indicating how much profit is generated with the money shareholders have invested.

Return On Assets Ratio

A financial metric used to evaluate a company's efficiency in generating profits from its assets, calculated by dividing net income by total assets.

Debt And Equity Financing

Ways in which a company raises funds through borrowing (debt) or selling ownership shares (equity).