The Level of Organizational Performance Is Unrelated to How Effectively

question 35

True/False

The level of organizational performance is unrelated to how effectively and efficiently managers utilize resources to achieve objectives.

---

Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects receivables or the speed of their customer payments.

Average Receivables

A measure that summarises the average amount of accounts receivable over a specific period, often used to assess the effectiveness of a company's credit and collection policies.