Ideally, a Company Reaches a Point Where Increases in Operating

question 130

Multiple Choice

Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as ________.

• A)net profit to assets ratio
• B)profitability ratio
• C)net profit to equity
• D)operating leverage

---

Definitions:

Experimental Method

A research approach where variables are manipulated to determine their effect on other variables within a controlled environment.

Naturalistic Observation Method

The naturalistic observation method involves observing subjects in their natural environment without intervention, to study behaviors and interactions as they unfold naturally.

Correlational Method

A research strategy that investigates the relationship between two or more variables to determine whether they occur together or not in a predictable pattern.

Social Desirability Bias

The inclination of individuals to respond to inquiries in a way that they believe others will approve of.