External Benefits Accrue

question 81

Multiple Choice

External benefits accrue:

• A)directly to the decision maker of a market exchange.
• B)indirectly to the decision maker of a market exchange.
• C)without compensation to someone other than the person who caused them.
• D)to the government without its direct intervention.

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Definitions:

Gross Margin

The difference between sales revenue and cost of goods sold, representing the profitability before deducting selling and administrative expenses.

Return On Total Assets

A financial ratio that measures how effectively a company is using its assets to generate profit, calculated as net income divided by total assets.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.