The Two Kinds of External Organizational Environments Are the General

question 11

True/False

The two kinds of external organizational environments are the general environment that affects all organizations and the specific environment that is unique to each company.

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Definitions:

Quick Ratio

A liquidity indicator that measures a company’s ability to pay off its current liabilities without relying on the sale of inventory by dividing liquid assets by current liabilities.

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management uses investments to generate earnings growth.

Du Pont Analysis

A financial analysis method that breaks down return on equity into three parts: operating efficiency, asset use efficiency, and financial leverage, allowing for detailed evaluation of a company's performance.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.