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).