Which of the Following Is Not a Reason for Using

question 2

Multiple Choice

Which of the following is not a reason for using profitability measures?

• A) to assess performance of key staff
• B) to compare performance against competitors
• C) to measure the ability to meet its debts as they fall due
• D) to track revenue and expenses over time

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Definitions:

Marginal Revenue

The additional revenue that a firm receives from selling one extra unit of a product or service.

Demand Schedule

A Demand Schedule is a tabular representation of the relationship between the price of a good or service and the quantity demanded by consumers, underlining the law of demand.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain number of years.

Research And Development

A business or government activity that involves the study and creation of new products, services, or discoveries.