If a Firm Has a Total Asset Turnover of 8

question 27

Multiple Choice

If a firm has a total asset turnover of 8 times and a return on investment of 15%, its net profit margin must be ____.

• A) 1.875%
• B) 1.95%
• C) 2.05%
• D) 2.25%

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Definitions:

Management Practices

The methods, strategies, and techniques employed by managers to improve efficiency and achieve organizational objectives.

High Values

Principles or standards considered to be of great importance or virtue, guiding moral judgment and behavior.

Delegating Decision-Making

The transfer of authority and responsibility for making decisions from one person or group to another, often seen as a key component of effective leadership.

Untrained Workforce

A group of employees who have not received formal instruction or skills development related to their job functions.