Which Ratio Is Considered to Be the Primary Measure of Overall

question 8

Multiple Choice

Which ratio is considered to be the primary measure of overall profitability as it assesses how effectively the business has used its funds?

• A)return on ordinary shareholders' funds.
• B)gross profit margin.
• C)return on capital employed.
• D)operating profit margin.

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Definitions:

Direct Approach

A communication strategy that involves stating the main point or purpose at the beginning of the message.

Routine Message

A standard or typical communication sent in the regular course of business or personal affairs.

Negative Information

Data or facts that may be unfavorable or detrimental to an individual's or organization's image or objectives.

Positive Message

Communication that conveys good news or a favorable outcome, often intended to motivate or encourage.