A Measure of the Manager's Ability to Control Expenses and Increase

question 46

Multiple Choice

A measure of the manager's ability to control expenses and increase revenues to improve profitability is:

• A) Residual income (RI) divided by level of invested capital.
• B) Return on equity (ROE).
• C) Return on investment (ROI).
• D) Return on sales (ROS).
• E) Asset turnover (AT).

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Definitions:

Structural Unemployment

A type of unemployment that results from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Skills Mismatch

A discrepancy between the skills offered by labor market participants and the skills demanded by employers.

Available Job Openings

The number of job positions that are currently unfilled and available to be applied for by job seekers.

Deflation

A decrease in the general price level of goods and services, often associated with an increase in the value of money.