To Assess Whether or Not a Firm Is Earning an Adequate

question 29

Multiple Choice

To assess whether or not a firm is earning an adequate rate of profit,return on capital employed (ROCE) is a better indicator than return on sales because:

• A)Sales are more variable than capital employed
• B)Return on sales vary between industries according to their capital intensity
• C)A firm's return on sales depends upon the choice between gross margin,operating margin,and net margin
• D)ROCE is based upon cash flow

---

Definitions:

Freshwater Systems

Ecosystems that are comprised of bodies of water like rivers, lakes, and wetlands, which have low salt concentration.

Economic Service

Activities or functions that have monetary value to individuals or society at large, such as pollination, clean water, and raw material provision.

Nutrient Cycling

The movement and exchange of organic and inorganic matter back into the production of living matter through processes such as decomposition.

Groundwater Recharge

The process by which external water is added to an aquifer, replenishing the groundwater supply.