Measuring Profitability on a Relative Rather Than Absolute Basis Is

question 26

Multiple Choice

Measuring profitability on a relative rather than absolute basis is important because of all of the following EXCEPT:

• A) It indicates how much profit a firm earns per dollar of revenue instead of overall profit.
• B) It helps to compare firms of different sizes.
• C) Relative profitability is a better reflection of competitive advantage than is absolute profitability.
• D) A firm that has the greatest overall profit will sustain competitive advantage(s).

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Definitions:

Humanist Term

A concept or term associated with humanism, emphasizing human values and concerns.

Self-actualizing

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Unconditional

Not subject to any conditions, limitations, or exceptions; often used in psychological contexts to describe types of positive regard or love.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, from basic physiological needs to self-actualization.