Assume BDS Acquired Its Main Supplier,ABC

question 68

Multiple Choice

Assume BDS acquired its main supplier,ABC.As a result of the acquisition,BDS finds that its profit margin increased but its ROA remained constant.A decrease in which one of these ratios is most apt to be the reason why the ROA did not increase with the increase in the profit margin?

• A) Leverage ratio
• B) Market-to-book ratio
• C) Asset turnover
• D) Debt burden

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Definitions:

Channel Conflict

A situation in which channel partners, such as manufacturers and retailers, compete against each other in the market with the same product or service.

Order Fulfillment

The process involving receiving, processing, and delivering orders to customers, an essential function in the operations of e-commerce and retail businesses.

E-tailing

The sale of goods and services through the internet, typically through websites designed for retail sales.

Purchasing Process

A series of steps that an organization follows to identify and acquire goods or services from external sources.