Which of the Following Ratios Can Managers Use to Break

question 41

Multiple Choice

Which of the following ratios can managers use to break down return on investment (ROI) for improving performance?

• A)Inventory turnover and gross margin ratio.
• B)Inventory turnover and profit margin ratio.
• C)Operating profit margin and EVA.
• D)Operating profit margin and asset turnover.
• E)None of the answer choices is correct.

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Definitions:

Corporate Social Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Business Costs

Business costs entail the expenses associated with the day-to-day operations of a business, including but not limited to production, labor, materials, and overhead costs.

Social Power

The ability of an individual or group to influence or control others within a social structure, often used to achieve personal or collective goals.

Whistle Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.