If a Company Generates $3

question 25

Multiple Choice

If a company generates $3.15 in operating cash flows for every $1 of net income, then the company's:

• A) capital acquisition ratio is 3.15.
• B) net profit margin is 3.15.
• C) return on equity is 3.15.
• D) quality of income ratio is 3.15.

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Definitions:

Uncertainty Avoidance

As a cultural value, the extent to which members of a society rely (and should rely) on social norms, rules, and procedures to lessen the unpredictability of future events.

Procedures

Procedures are established methods or sequences of actions for performing a task or solving a problem systematically.

Valuing Diversity

The appreciation and respect for differences among individuals in age, gender, ethnicity, religion, disability, sexual orientation, education, and national origin.

Organizational Strategy

Refers to the plan of action employed by a company or institution to reach its long-term goals and ensure its survival and growth.