Different Profitability Measures Can Lead to Different Performance Ranking of Firms

question 78

Multiple Choice

Different profitability measures can lead to different performance ranking of firms. In particular, the following may affect the measure and ranking:

• A)Use of strict Accounting Profit, or an adjusted figure such as EBITDA
• B)The application of accounting standards that vary across countries
• C)The time period over which performance is measured
• D)All of the above

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Definitions:

Desired Effects

The intended outcomes or results from a specific action, behavior, or intervention.

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Cocaine

A powerful stimulant drug derived from the coca plant, often used recreationally for its intense euphoric effects.

Amphetamines

A class of stimulant drugs used to treat ADHD and narcolepsy, which can also be abused for their euphoric effects.