Which One of the Following Best Indicates a Firm Is

question 66

Multiple Choice

Which one of the following best indicates a firm is utilizing its assets more efficiently than it has in the past?

• A)Decrease in the total asset turnover
• B)Decrease in the capital intensity ratio
• C)Increase in days' sales in receivables
• D)Decrease in the profit margin
• E)Decrease in the inventory turnover rate

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Definitions:

Demand Changes

Alterations in consumer desire or need for products and services, influenced by factors like price, trends, and economic conditions.

Price War

A competitive strategy involving retailers or companies reducing their product prices to gain more customers and market share from competitors.

Everyday Even Lower Pricing

A pricing strategy aimed at consistently offering products at lower prices than usual, meant to attract and retain customers.

Market War

Intense competitive actions among companies in the same industry to gain market share, often involving aggressive pricing, advertising, and product launches.