Which Ratio Would Be Most Helpful to a Business Owner

question 22

Multiple Choice

Which ratio would be most helpful to a business owner to measure the profit per dollar of sales?

• A)Net sales to total assets
• B)Net sales to working capital
• C)Net profit on sales
• D)Net profit to equity

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Definitions:

Emotional Intelligence

The ability to identify your own and other people’s emotions accurately, express your emotions clearly, and regulate emotions in yourself and others.

Own Emotions

The personal experience and awareness of one's own feelings.

Componential Intelligence

A facet of Robert Sternberg's Triarchic Theory of Intelligence that involves analytical problem-solving abilities, including the capacity to evaluate, analyze, and solve abstract problems.

Cognitive Dissonance

A state of tension that occurs when a person simultaneously holds two cognitions that are psychologically inconsistent or when a person’s belief is incongruent with his or her behavior.