The Relevant Variable a Financial Manager Uses to Measure Returns

question 130

Multiple Choice

The relevant variable a financial manager uses to measure returns is

• A) net income determined using generally accepted accounting principles.
• B) earnings per share minus dividends per share.
• C) cash flows.
• D) dividends.

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Definitions:

Marginal Cost

Is the increase in total cost that arises from producing one additional unit of a good or service.

Ruthlessly Efficient

Operating with extreme efficiency, often at the expense of other considerations such as employee welfare or ethical considerations.

Recognizable Brand Name

A brand name that is widely known among the public and is easily recalled or recognized due to its reputation or marketing.

Monopoly Power

Refers to the ability of a firm or entity to control the market price and output of a product or service, due to lack of competition.