__________ Best Explains a Ratio of (Sales/average Net Fixed Assets)that

question 33

Multiple Choice

__________ best explains a ratio of (sales/average net fixed assets) that exceeds the industry average.

• A) The firm expanded plant and equipment in the past few years
• B) The firm makes less efficient use of assets than competing firms
• C) The firm has a substantial amount of old plant and equipment.
• D) The firm uses straight-line depreciation
• E) None of these

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Definitions:

Weekend Selling Activity

Commercial operations that specifically occur on weekends, often relating to retail or leisure services aiming to capitalize on increased consumer availability.

Hardware Merchants

Businesses specialized in selling tools, building materials, and related goods often to consumers and other businesses.

Share of Profits

A portion of the profits generated by a business or investment that is distributed to its investors, partners, or shareholders.

Action Against

Legal proceedings initiated to seek remedy or justice in a court of law for grievances or claims.