Which of the Following Can Be Inferred from Calculating a Company's

question 35

Multiple Choice

Which of the following can be inferred from calculating a company's operating margin?

• A) An organization's competitive advantage
• B) How efficiently an organization is using its resources
• C) Whether the organization has the resources available to meet the claims of short-term creditors
• D) How efficiently managers are turning inventory over
• E) How efficiently managers are collecting revenue from customers

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Definitions:

Incentive

A benefit, reward, or cost that motivates an economic agent to engage in a particular course of action.

Oligopoly

A market structure characterized by a small number of large firms dominating the market, which have significant control over price and high barriers to entry.

Nineteenth Century

The period from 1801 to 1900, characterized by industrialization, colonial expansion, and significant social, economic, and political changes.

Railroads

Transportation systems using trains to move goods and passengers along tracks, playing a key role in economic development by facilitating trade and movement.