Each of the Following Is a Step in the 10-Step

question 40

Multiple Choice

Each of the following is a step in the 10-step approach to developing measurements except:

• A) establish guidelines to measure if, and to what degree, critical success factors are met.
• B) obtaining a commitment of resources, time, and cooperation from senior business and IT management.
• C) develop a formal strategic plan, mission statements, and goals.
• D) implement a customer satisfaction measurement process.

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Definitions:

Debt-to-Total-Assets Ratio

The debt-to-total-assets ratio is a financial metric that measures a company's leverage by comparing total debts to total assets.

Capital Structure

The manner in which a firm’s assets are financed; that is, the right side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm such as debt, preferred stock, and common equity.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Debt-to-Total-Assets Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its total assets, showing what portion of the assets is financed by debt.