The Net Profit to Asset Ratio Measures ________

question 40

Multiple Choice

The net profit to asset ratio measures ________.

• A)the owner's rate of return on investment
• B)how much profit a company generates for each dollar of assets that it owns
• C)a company's profit per dollar of sales
• D)a company's ability to generate sales in relation to its asset base

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Definitions:

Correspondent Inference

Correspondent inference is a theory in social psychology that explains how individuals infer the disposition or traits of others from their observed behavior, especially when their actions are freely chosen.

External Attribution

The process of attributing the cause of a behavior or event to situational factors outside the control of the individual.

Availability Heuristic

A cognitive heuristic that depends on readily accessible examples in an individual's memory when assessing a particular subject, idea, technique, or choice.

Mood-Congruent Memory

The tendency to recall memories that are congruent with one's current mood, enhancing the mood's effects on memory recall.