The Ratio Which Is Considered to Be the Primary Measure

question 9

Multiple Choice

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

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

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Definitions:

Placebo

A harmless substance or treatment that has no therapeutic effect, used as a control in testing new drugs.

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.

Mood Swing

Rapid and often extreme fluctuations in one's emotional state without a noticeable reason.

Refractory Period

A period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.