The DuPont System Merges the Income Statement and Balance Sheet

question 195

Multiple Choice

The DuPont system merges the income statement and balance sheet into two summary measures of profitability, ________.

• A) net profit margin, and return on total assets
• B) net profit margin, and return on equity
• C) return on total assets, and return on common equity
• D) net profit margin, and price/earning ratio

---

Definitions:

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Virtue Ethics

An ethical theory that emphasizes virtues of mind, character, and sense of honesty as the basis for morality.

Ethics of Care

A normative ethical theory that emphasizes interpersonal relationships and compassion as foundational to moral action.

Psychological Egoism

The theory that suggests that all human actions are motivated by self-interest, even in what seem to be acts of altruism.