If a Business Entity Shows a High Asset Turnover Ratio,it

question 17

Multiple Choice

If a business entity shows a high asset turnover ratio,it means that

• A) It requires a high level of fixed assets to sustain is sales revenue year on year.
• B) The profit generated year after year represents a high percentage of assets.
• C) It always buys state of the art assets and discards older assets before they are fully obsolete.
• D) It uses a small amount of assets to generate relatively large amounts of sales revenue.

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Definitions:

Wanting

An organism’s motivation to obtain a reward.

Intrinsic Reward

A reward or form of motivation that comes from within an individual, driving behavior for the inherent satisfaction or pleasure derived from the activity itself.

Extrinsic

Originating from outside an individual, often referring to motivations or rewards that are external rather than internal.

Implicit

Something implied or understood though not directly expressed.