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:

Separate Abilities

The concept that intelligence comprises multiple distinct abilities that operate independently.

IQ Test

A standardized assessment tool designed to measure human intelligence and cognitive abilities.

Psychological Test

a standardized measure used to evaluate an individual's mental and emotional functioning from various aspects.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations under similar conditions.