Which of the Following Ratios Gives Information on the Amount

question 4

Multiple Choice

Which of the following ratios gives information on the amount of profits reinvested in the firm over the years?

• A) Sales/total assets
• B) Debt/total assets
• C) Debt/equity
• D) Retained earnings/total assets

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Definitions:

Purchase Decision

The final stage in the consumer decision-making process where the consumer chooses to buy a product or service after evaluating alternatives.

Bidder's List

A bidder's list is a compilation of suppliers or contractors who have expressed interest in submitting proposals or bids for a specific project or procurement, maintained by purchasing organizations for competitive bidding processes.

Buying Center

A group within an organization responsible for making purchasing decisions.

Purchase Decision

The process and outcome of evaluating and choosing from available products or services, culminating in the act of buying.