Which of the Following Measures the Operating Return on the Firm's

question 26

Multiple Choice

Which of the following measures the operating return on the firm's assets, irrespective of financial leverage and taxes?

• A)Basic earnings power ratio
• B)Profit margin
• C)Return on assets
• D)Return on equity

---

Definitions:

Base Year

A specific year against which economic growth or other economic indicators are measured, serving as a comparison point.

GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.

Net Exports

Represents the difference between a country's total value of exports and its total value of imports over a certain period.

National Income

The total value of all goods and services produced by a country over a specific period, reflecting the overall economic health of the nation.