Which of the Following Best Describes What a Profitability Ratio

question 34

Multiple Choice

Which of the following best describes what a profitability ratio is?

• A)It shows the relative amount of funds in the business supplied by creditors and shareholders.
• B)It indicates a company's ability to pay short-term debts.
• C)It indicates management's ability to generate a financial return on sales or investment.
• D)It shows the profit margins for the last six months.
• E)It indicates the future profits from the current customer base.

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Definitions:

High Instrumentality

The belief or expectation that high performance will lead to desirable outcomes.

Procedural Justice

The fairness in the processes that resolve disputes and allocate resources, emphasizing transparency, and consistency in the procedures.

Job Evaluation

A systematic process of determining the relative worth of jobs to establish which jobs should be paid more than others within an organization.

Employees' Perceptions

The way employees view or interpret actions, policies, and the environment of their workplace.