Oglethorpe Company Reports the Following Information from the Vertical Analysis

question 24

Multiple Choice

Oglethorpe Company reports the following information from the vertical analysis of their income statement: Which of the following statements could be logically concluded from the above data?

• A)The company made a higher gross profit in 2014 than in 2013.
• B)The company made higher net income in 2014 than in 2013.
• C)The company has improved the profit they make per dollar of sales in 2014.
• D)The company's total net income increased by 0.3% in 2014.

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Definitions:

Expert Power

The ability to influence others based on the possession of knowledge, skills, or expertise that is recognized and valued.

Rationality

The quality of being based on or in accordance with reason or logic, often relating to the making of decisions and judgments that are sensible and sound.

Influence Tactic

Methods or strategies used by an individual or group to persuade or encourage others to follow their direction or accept their decisions.

Ingratiation

A social influence strategy where an individual attempts to make themselves more likable to another, often through flattery or favors.