Which of the Following Is a Mathematical Modeling Technique That

question 18

Multiple Choice

Which of the following is a mathematical modeling technique that managers can use in making decisions that involve optimizing an objective,subject to constraints?

• A)optimization
• B)estimation
• C)linear programming
• D)transportation model

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Definitions:

Du Pont Identity

A framework that breaks down the return on equity (ROE) into three parts: profit margin, asset turnover, and financial leverage, to diagnose financial performance.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.