Ideally, a Company Reaches a Point Where Increases in Operating

question 130

Multiple Choice

Ideally, a company reaches a point where increases in operating efficiency mean that expenses as a percentage of sales revenue flatten or even decline. This is referred to as ________.

• A)net profit to assets ratio
• B)profitability ratio
• C)net profit to equity
• D)operating leverage

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Definitions:

CDs

Short for Compact Discs, a digital optical disc data storage format used to store music, data, or software.

Federally Insured

Protection or guarantee by the federal government for deposits in banks or investments, safeguarding against loss.

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Secured Bonds are debt securities backed by collateral to reduce the risk associated with lending, enhancing the bondholder’s security.

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Individuals or entities that hold debt securities issued by corporations or governments, entitling them to interest payments and the principal investment return at maturity.