A Firm with a Low Net Profit Margin Can Improve

question 157

Multiple Choice

A firm with a low net profit margin can improve its return on total assets by ________.

• A) increasing its debt ratio
• B) increasing its total asset turnover
• C) decreasing its fixed asset turnover
• D) decreasing its total asset turnover

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Definitions:

Sale of Land

The transfer of ownership of a parcel of real estate from one party to another, typically through a legal process.

Excludes Liability

A clause or agreement that absolves one party from legal responsibility or damages in specific circumstances.

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.