The McCallum Management Principles Advocate the Use of

question 34

Multiple Choice

The McCallum management principles advocate the use of

• A) time-motion study to determine the most productive way to perform job-tasks.
• B) employee stock-purchase programs.
• C) internal accounting systems and performance evaluations.
• D) leveraged buy-outs to increase the firm's control of an industry.

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Definitions:

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Equity Multiplier

A financial leverage ratio that measures the portion of a company`s assets that are financed by its shareholders' equity.

Price-Earnings Ratio

A valuation ratio comparing a company’s current share price to its per-share earnings, helping investors evaluate if a stock is over or under-valued.

Net Profit Margin

A financial ratio that shows the percentage of net income generated from total revenue.