The Exact Procedures We Use to Describe How a Variable

question 87

Multiple Choice

The exact procedures we use to describe how a variable is to be measured are called:

• A) analysis decisions.
• B) operational definitions.
• C) measurement theory.
• D) classification schemes.

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Definitions:

Return on Assets

Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficient a company is at using its assets to generate profits.

Return on Inventory

A financial metric used to assess how effectively a company generates profits from its inventory investments.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how effectively equity is used to generate profits.

Asset Management Ratios

Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.