Southwest Airlines Uses Its Assets Very Productively

question 64

Multiple Choice

Southwest Airlines uses its assets very productively. Its turnaround time, or the time that its airplanes sit on the ground while they are being loaded and unloaded, is the lowest in the airline industry. In terms of the primary financial objectives of a firm, this attribute is a measure of Southwest's ________.

• A) efficiency
• B) effectiveness
• C) stability
• D) liquidity
• E) profitability

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Definitions:

Behavioral

Relating to the actions and reactions of individuals or groups in response to stimuli.

Acquisition Costs

The total cost associated with acquiring a new asset, customer, or property, including all legal, advisory, and administrative expenses.

Customer Retention

The activities and actions companies take to reduce the number of customers leaving or switching to a competitor.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.