Is Appropriate to Use the Fixed Assets Turnover Ratio to Appraise

question 31

True/False

is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.

---

Definitions:

Franchising

A business model wherein a business owner licenses their business logo, name, and operating model to an external party or franchisee.

Franchising Relationship

A business model that involves a contractual partnership between a franchisor and franchisee to use the franchisor's brand and operating methods.

Franchisor

A business entity that grants the right to an individual or group to carry out commercial activities using its branding, system, and intellectual property in exchange for a fee and adherence to agreed specifications.

Corporate Brand

The collective identity, values, and personality of a company as perceived by the public, employees, and stakeholders.