Which of the Following Is an Example of a Business

question 68

Multiple Choice

Which of the following is an example of a business using information systems to create new products and services?

• A) Apple's creation of the iPad
• B) JC Penney's information system that allows its contract manufacturers to see what garments have been sold and need to be replaced
• C) The Mandarin Oriental's use of computers to keep track of guests' preferences
• D) Verizon's web-based digital dashboard providing real-time company information for managers
• E) Walmart's Retail Link's system

---

Definitions:

Profit Margin Ratio

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating the efficiency of the company in managing its operations.

Gross Margin Ratio

A financial metric expressing the difference between sales and the cost of goods sold as a percentage of sales.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Vertical Financial Statement Analysis

The examination of a company's financial statements to understand the relationships between individual items and the total, usually expressed as a percentage.