An Example of Additional Revenue That Might Result from Environmental

question 166

Multiple Choice

An example of additional revenue that might result from environmental activities is

• A)revenue from recycling.
• B)finding new applications for waste.
• C)increased sales as a result of improved environmental image.
• D)all of the above.

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Definitions:

Return on Total Assets

Return on Total Assets is a financial ratio that measures the profitability of a company in relation to its total assets, indicating how effectively a company is using its assets to generate earnings.

Profitability

The ability of a company to generate earnings above its costs and expenses over time.

Margin of Safety

The difference between actual or projected sales and the break-even point; measures the risk of not covering fixed costs.

Liabilities to Stockholders' Equity

A ratio that measures the amount of liabilities a company has compared to its shareholders' equity.