Plans

question 94

Multiple Choice

Plans

• A)are targets a manager wants to reach.
• B)are actions or means the manager intends to use to achieve goals.
• C)are specific to different industries.
• D)are inappropriate when resources are scarce.
• E)do not change over time.

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Definitions:

Payout Ratio

The proportion of earnings paid out to shareholders as dividends, typically expressed as a percentage of the company's total earnings.

Asset Turnover

A ratio indicating the effectiveness with which a firm employs its assets to generate sales.

Net Sales

This is the total amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Total Assets

Total Assets are all the assets a company owns, including cash, inventory, property, and equipment, showcasing the entity’s financial standing.