Which of These Is Lacking in the Goal "Profits Should

question 165

Multiple Choice

Which of these is lacking in the goal "profits should be increased in the coming year?"

• A) Specific and measurable
• B) Challenging but realistic
• C) Covers key result areas
• D) Defined time period
• E) None of these

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Definitions:

ROE

Return on Equity is a financial performance metric that is calculated by dividing a company's net income by its shareholders' equity.

Du Pont Identity

A formula that breaks down Return on Equity (ROE) into three components: operating efficiency, asset use efficiency, and financial leverage.

Forecast Increase Sales

A prediction or estimate of future growth in sales, based on current trends, market conditions, and economic indicators.

Financial Plan

A financial plan is a comprehensive strategy designed to help individuals or organizations achieve their financial goals, including saving, investment, budgeting, insurance, and tax strategies.