Companies That Are Able to Spot Key Trends in the Environment

question 114

Multiple Choice

Companies that are able to spot key trends in the environment know their business and most importantly know their

• A) suppliers.
• B) employees.
• C) customers.
• D) competitors.

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Definitions:

Dividends

Profits given by a corporation to its shareholders as a distribution.

ROE

Return on Equity, a profitability ratio that measures the amount of net income returned as a percentage of shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.

ROE

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.