In Service Firms, Financial Results Can Be Measured by All

question 7

Multiple Choice

In service firms, financial results can be measured by all the following except:

• A)Staff utilization.
• B)The profit multiplier.
• C)Collections of accounts.
• D)Throughput.

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Definitions:

Retained Earnings(Deficit)

The accumulated net income of a company minus any dividends paid to shareholders, reflecting the company's earnings reinvested in its operations.

Stock Split

An action by a company to increase the number of outstanding shares by dividing each share, which typically reduces the share price but does not change the overall market capitalization.

Shares Outstanding

The total number of a company's shares of stock that are currently owned by shareholders, including restricted shares.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and not retired, held in the company's treasury.