If the CEO of a Large, Diversified Firm Were Filling

question 19

Multiple Choice

If the CEO of a large, diversified firm were filling out a fitness report on a division manager (i.e., "grading" the manager) , which of the following situations would be likely to cause the manager to receive a better grade? In all cases, assume that other things are held constant.

• A) The division's basic earning power ratio is above the average of other firms in its industry.
• B) The division's total assets turnover ratio is below the average for other firms in its industry.
• C) The division's debt ratio is above the average for other firms in the industry.
• D) The division's inventory turnover is 6, whereas the average for its competitors is 8.

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Definitions:

Companion Cells

Plant cells that aid in the transport and regulation of nutrients within the phloem.

Pits

Small depressions or cavities on a surface, often used to describe features in plant or geological structures.

Carry Water

To transport or convey water from one place to another, often vital for irrigation or supplying drinking water.

Inorganic

Refers to chemical substances that are not made up of carbon-hydrogen bonds, typically including minerals, metals, and salts.