Jared Works at a Software Firm

question 54

Multiple Choice

Jared works at a software firm. He is promoted to the post of senior engineer after three years of employment. Despite his promotion, he has to cut down on purchases as his cost of living has almost doubled within the same time perioD) This situation best represents _____.

• A) inflation
• B) a recession
• C) deflation
• D) disintermediation
• E) deregulation

---

Definitions:

Fixed Asset Turnover

A financial ratio that measures how efficiently a company is using its fixed assets to generate sales.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

Net Fixed Assets

Assets with a physical form that are held by a company for long-term use, minus depreciation.

Average Collection Period

How long, on average, it takes for a business to get paid by its customers.