Peak Performance Sporting Goods Company Has Collected the Following Information

question 20

Multiple Choice

Peak Performance Sporting Goods Company has collected the following information about itself and its competitors: Which of the following statements explains the importance of this information?

• A)Return on Sales is an indication of how well Peak Performance is competing with others in the industry in generating income from sales.
• B)Although this information is important to Peak Performance,it is an internal calculation.Investors will not compare Peak Performance's return on sales with others.There are too many other variables such as higher expenses,which may prevent Peak Performance from maintaining the lowest measure.
• C)Unlike other measurements,a firm hopes that its Return on Sales is the lowest in the industry,thus,Peak Performance is neither doing the best nor doing the worst in its industry.
• D)As a profitability measurement,return on sales is not as important to the CFO as earnings per share,because this calculation does not show a dilution of ownership.

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Definitions:

Constitutional Status

The designation of legal and societal standing as defined by the constitution, which specifies the structure, powers, and rights within a nation.

Physician-Assisted Suicide

A practice wherein a physician provides a patient, at the patient's request, with the means to end their own life, often under circumstances of terminal illness and severe pain.

Supreme Court

The Supreme Court is the highest federal court in the United States, holding final appellate authority over all federal and state court cases that involve a point of constitutional or federal statutory law.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and guarantees all citizens "equal protection of the laws."