An Advantage of the DuPont Model for Calculating ROI Is

question 13

Multiple Choice

An advantage of the DuPont model for calculating ROI is that:

• A) it focuses on asset utilization as well as net income.
• B) it is easier to use than the straightforward ROI formula.
• C) it uses average assets and the straightforward ROI formula does not.
• D)it uses stockholders' equity.

---

Definitions:

Hot-Stove Rule

A management principle suggesting that discipline should be immediate, clear, consistent, and impartial, similar to touching a hot stove.

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.