Indicate Whether Each of the Following Statements Is True or False

question 120

Short Answer

Indicate whether each of the following statements is true or false.
Margin is calculated by dividing operating income by net income.______
Turnover is a measure of the profits generated from sales.______
Return on investment can be improved by increasing sales,decreasing expenses,or decreasing the asset base.______
If return on investment increases when sales increase,that change usually is due at least in part to the effect of fixed costs (operating leverage).______
Return on investment blends many aspects of managerial performance into a single ratio.______

---

Definitions:

Mutual Agency

A legal principle in partnerships where each partner has the authority to act on behalf of, and bind, the partnership in contractual agreements.

Unlimited Liability

Partners may be personally liable for debts of the partnership.

Limited Risk

Financial exposure that is knowingly restricted or minimized in investments or business operations.

Articles of Partnership

A legal document that specifies the rights, duties, and obligations of each partner participating in a partnership business.