The Following Information Is Provided for Nguyen Company and Northwest

question 183

Multiple Choice

The following information is provided for Nguyen Company and Northwest Corporation. If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?

• A) Nguyen is more profitable than the average company in its industry.
• B) Northwest is more profitable than Nguyen.
• C) Both Nguyen and Northwest are more profitable than the average company in their industry.
• D) Nguyen is more profitable than Northwest.

Understand the process and importance of benchmarking in achieving organizational improvement.

Understand the concept and types of benchmarking.

Comprehend the components and significance of the Du Pont chart in performance measurement.

Identify key performance indicators and their application in organizational measurement.

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Definitions:

Inexpensive to Organize

Refers to the low cost associated with setting up a certain type of business structure or organization.

Personal Assets

Items or properties owned by an individual that have value.

Mutual Agency

A legal principle in partnership that allows each partner to act on behalf of the partnership, binding it in contracts and agreements.

Unlimited Liability

A legal status where business owners are personally responsible for all the business's debts, exposing their personal assets to risk.