Corporate Managers Are Expected to Make Corporate Decisions That Are

question 77

Multiple Choice

Corporate managers are expected to make corporate decisions that are in the best interest of:

• A) top corporate management.
• B) the corporation's board of directors.
• C) the corporation's shareholders.
• D) all corporate employees.

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Definitions:

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Asset Turnover

A profitability ratio that measures how effectively a business is using its assets to generate sales, computed as sales divided by average total assets (excluding long-term investments).

Dividend Yield

The dividend per share a company pays out to its shareholders annually, expressed as a percentage of the stock's current market price.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how efficiently equity is being utilized.