If Marketing Expenses to Sales Ratio Is 4

question 31

Multiple Choice

If marketing expenses to sales ratio is 4.2% in period 1 and 5.1% in period 2,this indicates that:

• A)the firm has become more efficient in controlling its marketing expenses over the period.
• B)the firm has become less efficient in controlling its marketing expenses over the period
• C)marketing expenses are a lower percentage of sales revenue
• D)the firm is more profitable in period 2

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Cash Dividend

A payout from a company's profits, determined by the board of directors, given to a group of its stockholders as cash.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs, making key decisions on its behalf.