Which of the Following Is a Profitability Ratio That Uses

question 100

Multiple Choice

Which of the following is a profitability ratio that uses the number of outstanding shares in the calculation?

• A) Capital gain
• B) Earnings per share
• C) Price per share
• D) Net income
• E) Dividend yield

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Definitions:

Piecework

A type of incentive system that compensates workers for each unit of output.

Individual Incentive Plans

Compensation strategies designed to reward employees based on their individual performance and achievements.

Commissions

Earnings based on a percentage of the sales made by an employee or agent, as a form of incentive pay.

Pay Equity

The principle of offering equal pay for work of equal value, aiming to eliminate wage discrimination based on gender or other unrelated factors.