The DuPont Method Decomposes Return on Equity into [Blank]

question 16

Multiple Choice

The DuPont method decomposes return on equity into [blank].

• A)return on assets and the debt ratio
• B)return on assets and the equity multiplier
• C)operating profit and inventory turnover
• D)net profit margin and fixed asset turnover

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Definitions:

Absenteeism

Absenteeism is the frequent absence from work or other obligations without valid reasons, affecting productivity and efficiency.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to a company's increased productivity or profitability.

Current Distribution

The process or manner by which resources, earnings, or assets are apportioned at the present time.

Cash Plan

A type of health insurance plan that covers everyday medical expenses and provides cash payments for specified conditions or treatment.