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Indicate whether each of the following statements is true or false.
_____ a) Margin is calculated by dividing operating income by net income.
_____ b) Turnover is a measure of the profits generated from sales.
_____ c) Return on investment can be improved by increasing sales, decreasing expenses, or increasing the asset base.
_____ d) An increase in sales may cause a company's return on investment to increase because of the effects of fixed costs.
_____ e) Return on investment combines many aspects of managerial performance into a single ratio.
Congeneric Merger
Involves firms that are interrelated but that do not have identical lines of business. One example is Advanced Micro Devices' acquisition of ATI Technologies.
Related Businesses
Companies or entities that engage in similar or complementary activities, often within the same industry or market.
Carve-out
A strategic move by a company to sell or spin off a portion of its business or assets.
Corporate Subsidiary
A company that is completely or majority-owned by another company, known as the parent company.
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