While Determining the Most Profitable Company from the Given Number

question 41

Multiple Choice

While determining the most profitable company from the given number of companies, which of the following would be the best indicator of relative profitability?

• A)Highest net income
• B)Highest retained earnings
• C)Highest return on equity
• D)Highest operating margin

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Definitions:

Peripheral

Relating to or situated on the edge or periphery of something; often used to describe things that are not of primary importance.

Sympathetic

Pertaining to the sympathetic nervous system, part of the autonomic nervous system that activates the body's "fight or flight" response.

Peripheral Nervous System

Part of the nervous system outside the brain and spinal cord, responsible for connecting the central nervous system to the rest of the body.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and coordinating bodily functions.