The Best Measure of Managerial Efficiency in the Use of Investments

question 63

Multiple Choice

The best measure of managerial efficiency in the use of investments in assets is:

• A) rate of return on stockholders' equity.
• B) rate of return on investment.
• C) operating income.
• D) inventory turnover.

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Definitions:

Exclusive Contracts

Agreements that restrict parties from engaging in similar agreements with others, often found in employment or distribution deals in various industries.

Economy of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit falls as production scales up.

Sound-on-film

A technology that synchronizes audio with moving pictures, allowing for sound to be recorded onto the same film strip as the image.

Movietone

Movietone refers to an early sound film system that combined motion pictures with synchronized recorded sound.