Due to a Recent Construction of an Upscale Housing Community

question 7

Multiple Choice

Due to a recent construction of an upscale housing community near a tennis club,customer use has skyrocketed during the year and the club is operating at all-time high levels,far beyond the goals set the previous year.The best strategy for the manager is to ________.

• A)change goals for the following year
• B)do nothing
• C)advertise
• D)run a sale to increase customers

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Definitions:

Net Profit Margin

A financial ratio that shows the percentage of profit a company makes for each dollar of sales, after all expenses are deducted.

Return on Equity

A measure of a corporation's profitability that calculates how much profit a company generates with the money shareholders have invested.

Price/Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.