A Study on the Effects of Staffing and Training on Firm

question 65

Multiple Choice

A study on the effects of staffing and training on firm productivity and profit growth before and after the Great Recession concluded:

• A)Firms that more effectively selected and trained employees outperformed competitors.
• B)Selection was more important for postrecession recovery
• C)Training was important for prerecession profitability.
• D)The study concluded that all of these conclusions were true

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Definitions:

Average Net Income

The mean amount of net earnings calculated over a specified period, indicating the profitability of a business after all expenses have been subtracted from revenues.

Accounting Return

A measure of profitability in relation to various accounting measures, such as net income or assets.

Average Accounting Return (AAR)

An investment’s average net income divided by its average book value.

Return on Equity (ROE)

A measure of financial performance calculated by dividing net income by shareholders' equity, reflecting the profitability relative to the equity.