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:

Diffusion Of Responsibility

The phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.

Pluralistic Ignorance

A phenomenon where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, due to a lack of open communication.

Uncaring Attitude

describes a lack of interest or concern about something or someone, often perceived as indifference or emotional detachment.

Life Cycle

The series of stages that an entity (such as a product, organization, or project) goes through from initiation to its eventual termination or renewal.