Following the DuPont Analysis Model, the Higher the Leverage Ratio

question 183

Multiple Choice

Following the DuPont analysis model, the higher the leverage ratio, the higher the:

• A)net profit margin ratio.
• B)return on assets.
• C)return on sales.
• D)return on stockholders' equity.

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Definitions:

Job Enrichment

A method of giving an employee more responsibility that includes some of the planning and control necessary for job accomplishment; vertical expansion.

Behavioral Approach

A study method focusing on understanding how human behavior is influenced by the environment and the mind.

Job Rotation

A method where employees rotate between different jobs to learn new skills and gain exposure to various areas of an organization.