Which Ratio Is Considered to Be the Primary Measure of Overall

question 49

Multiple Choice

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

• A)Return on ordinary shareholders' funds
• B)Gross profit margin
• C)Return on capital employed
• D)Operating profit margin

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Definitions:

Humility

A personal quality characterized by a lack of ego, a recognizing of one's own limitations, and a focus on the needs and accomplishments of others.

Conflicting Evidence

Information or data that contradicts or challenges existing understanding or findings.

Testable Propositions

Statements or hypotheses that can be empirically tested through observation or experimentation to evaluate their validity.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.