_____ Measure a Management's Effectiveness in Using the Invested Capital

question 26

Multiple Choice

_____ measure a management's effectiveness in using the invested capital of the business to provide profits.

• A) Profitability ratios
• B) Gross margin ratios
• C) Return on investments
• D) Return on equity

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Definitions:

Demand Shift

A change in the quantity of a product that consumers are willing and able to buy at each and every price level, caused by factors other than the product's price.

Normal Good

A good for which demand increases as consumer income rises and decreases when consumer income falls.

Substitute

A good or service that can be used in place of another to satisfy consumer needs or wants.

Dr. Pepper

A brand of carbonated soft drink created in the United States and well-known for its unique flavor.