A Firm with a Substandard Net Profit Margin Can Improve

question 19

Multiple Choice

A firm with a substandard net profit margin can improve its return on total assets by

• A) increasing its debt ratio.
• B) increasing its total asset turnover.
• C) decreasing its total asset turnover.
• D) decreasing its fixed asset turnover.

---

Definitions:

Problem-Solving

The process of finding solutions to difficult or complex issues by identifying the problem, gathering information, creating and considering options, and implementing solutions.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Conscientious

Referring to a trait of being thorough, careful, or vigilant; implies a desire to do a task well.

Critical Thinking

involves the objective analysis and evaluation of an issue in order to form a judgment.