Which of the Following Is the Least Effective Measure of Operating

question 59

Multiple Choice

Which of the following is the least effective measure of operating performance?

• A) ROC
• B) ROA
• C) ROE
• D)All of these are equally ineffective measures of operating performance.

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity has the power to influence market prices.

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.