If a Company's Ratio of Net Income to Net Sales

question 116

True/False

If a company's ratio of net income to net sales (generally referred to as profit margin)is low, then return on investment will be low.

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Definitions:

Expectancy Theory

A theory in motivational psychology that describes the motivational force as a function of an individual's belief in the likelihood of achieving desired performance levels and the perceived rewards associated with those levels.

P-to-O Expectancy

The belief that putting in a certain amount of effort (Performance) will lead to a specific outcome (Outcome) in the context of expectancy theory.

Four-drive Theory

A motivational theory suggesting that humans are driven by four basic needs: acquiring, bonding, learning, and defending.

Drive To Acquire

The innate or learned inclination to seek out and obtain possessions or attributes deemed valuable or necessary.