Which of the Following Is NOT a Profitability Measure That

question 194

Multiple Choice

Which of the following is NOT a profitability measure that is used to compare companies of different sizes?

• A) earnings per share
• B) rate of return on common stockholders' equity
• C) price/earnings ratio
• D) outstanding common stock ratio

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Definitions:

Proactive

Pertains to taking initiative by acting in anticipation of future problems, needs, or changes rather than reacting to them.

Innovation

The process of introducing new ideas, devices, or methods to enhance processes, goods, or services.

Status Quo Managers

Leaders who prefer maintaining existing conditions or the current state of affairs within an organization, often resistant to change.

High Involvement Management

A management approach that emphasizes employee participation in decision-making and the day-to-day operations of the organization.