When Determining the Rate of Return on Assets

question 114

Multiple Choice

When determining the rate of return on assets:

• A)return on assets is the product of three "drivers" according to the DuPont model.
• B)the DuPont model calculates the rate of return on assets as the net profit margin ratio times total asset turnover ratio.
• C)it is important for companies to develop strategies to decrease total asset turnover.
• D)total asset turnover measures how much every sales dollar generates in profit.

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Definitions:

Accepting Suggestions

The willingness to consider or adopt new ideas or recommendations from others.

Negotiating Conflict

The process of resolving disagreements or disputes through discussion, compromise, or other strategies to achieve a mutually acceptable outcome.

Fulfilling Commitments

The act of meeting the obligations or promises made to others in a timely and satisfactory manner.

Global World

A term reflecting the interconnectedness and interdependence of countries, economies, and cultures in today's modern landscape.