The DuPont Formula Allows the Firm to Break Down Its

question 106

True/False

The DuPont formula allows the firm to break down its return into the net profit margin, which measures the firm's profitability on sales, and its total asset turnover, which indicates how efficiently the firm has used its assets to generate sales.

---

Definitions:

Business

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.

Senior Executives

High-ranking employees in a business who are responsible for making major corporate decisions, usually part of the company’s top management.

Criminally Prosecuted

The process of being charged with and tried for a criminal offense by legal authorities.

Basic Resources

Essential assets or inputs required for the operation of an organization, including natural resources, human resources, and capital.