When an Organization Undertakes a Complete Review of Its Critical

question 43

Multiple Choice

When an organization undertakes a complete review of its critical work processes to make them more efficient in an effort to deliver higher quality, it is engaging in

• A) outsourcing.
• B) offshoring.
• C) reengineering.
• D) greenfield venturing.
• E) codetermining.

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Definitions:

Leverage Ratio

A financial ratio that measures the amount of debt used in a company's financing structure relative to its equity or other assets.

Pretax Profit/EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes interest and income tax expenses.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Current Ratio

A liquidity measure that compares a company's current assets to its current liabilities.