1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
FinnZ [79.3K]
3 years ago
15

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. Justify your response.
a. The division's DSO (days' sales outstanding) is 40, whereas the average for its competitors is 30.
b. The division's basic earning power ratio is above the average of other firms in its industry
c. The division's total assets turnover ratio is below the average for other firms in its industry
d. The division's debt ratio is above the average for other firms in the industry.
Business
2 answers:
PSYCHO15rus [73]3 years ago
8 0

Answer:

The correct option here is B)

A Division manager is much more likely to receive a better grade if it's basic earning power ratio is above the average of other firms in its industry.

Explanation:

Basic Earning Power (BEP) ratio is a financial metric that estimates the earning capacity of business before tax and other leverages are deducted or taken into consideration.

To calculate your BEP ratio, you divide Earning Before Interest and Taxes (EBIT) by the total assets.

A higher BEP shows that the manager is better than other firms at using its assets to generate income.

Equity analysts always assess a company’s BEP before making the decision to invest. Simply put, the BEP shows them if a company’s stock is worth investing in.

Cheers!

aivan3 [116]3 years ago
4 0

Answer:

B.The division's basic earning power ratio is above the average of other firms in its industry

Explanation:

Because The division having Earning Power ratio( EBIT/Total Assets) better than the average of other firms in the industry that means that the firm is using the assets more efficently than the other firms.

Other options are not valid as the total Asset Turnover ratio, Inventory Turnover ratio, DSO are worse than the industry average and the Debt/CApital ratio higher than industry average that means the firm is having a higher risk of leverage. So these factors cannot give a better grade to the division manager.

Only Option b is the perofrmance criterion that will give a better grade to the division manager.

You might be interested in
What is the study of the ways in which money is created and used in society?
arlik [135]
Choice B. Economics is the study of the ways in which money is created and used in society.

Hope this helps and have a great rest of the day!! :)
4 0
3 years ago
The Durham-Mills Self-Administering Test of Mental Ability was the first group-administered mental ability test to have widespre
forsale [732]

Answer:

False

Explanation:

The Otis Self-Administering Test of Mental Ability was the first group-administered mental ability test to have widespread use in industry.

This test was first developed in 1922 by Arthur Otis. It was first designed to measure students' general school abilities. Otis's first tests were designed for the Army in 1917 and were known as the Alpha tests (for those who could read) and the Beta tests (for those who couldn't read).

7 0
3 years ago
As the price level rises ceteris paribus people holding some of their wealth in monetary form because:_____
klio [65]

Answer:

a. less wealthy and they buy less.

Explanation:

we are assuming a situation where the price level rises (inflation rises), so anyone holding cash will be able to purchase a smaller amount of goods with the same amount of cash simply because the goods are more expensive. E.g. you purchased 10 goods with $100, but if the inflation rate increases to 10%, you will be able to purchase only 9 goods with the same $100. As inflation rises, people holding cash (or other monetary form) will lose wealth and purchasing power.

6 0
3 years ago
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​
andriy [413]

Answer:

A larger industrial and service sector, and a larger number of people working outside of agriculture, can indicate a higher level of industrialization in the economy and vice versa. This means that the size of industrial service and the sector of agriculture employment rate indicates the level of industrialization because if the agriculture employment is higher than the industrial service it means that the country is not fully developed yet and therefore the level of industrialization is lower. But if the industrial service is higher than the agriculture employment that suggests or indicates that the country is developing or developed. For example in the United States the size of the industrial/service sector is much larger than it's agricultural employment and therefore this should suggest that country is much more industrialized or developed and the United States is. In comparison you take a developing country such as Chad and you can see that the agricultural employment is higher than the size of the industrial/service sector and in relation to this you can see that Chad must have a lower level of industrialization and in fact it does.

Explanation:

4 0
3 years ago
A ________ gives a franchisee the right to produce and distribute the manufacturer's products, using supplies purchased from the
Mars2501 [29]
The answer is Product franchise. A product franchise is a diversifying assertion where producers enable retailers to disseminate items and utilize names and trademarks. An assembling establishment is a diversifying understanding where the franchisor enables a producer to create and offer items utilizing its name and trademark.
4 0
3 years ago
Other questions:
  • The responsibility associated with the right for product safety is a. to investigate the store’s reputation for honesty. b. to c
    8·1 answer
  • In calculating cash flows from operating activities using the indirect method, a loss on the sale of equipment will appear as a(
    12·1 answer
  • Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i
    15·1 answer
  • If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial
    9·1 answer
  • Although you were not fortunate enough to get Chipper's Golf Resort stock [ticker symbol: CHPR] as an IPO, you are still thinkin
    5·1 answer
  • Later, the teaching assistant in Bob's chemistry course gives him some advice. "Based on past experience," the teaching assistan
    12·1 answer
  • During the Great Recession, a major financial crisis followed the collapse of housing prices, which led to ____. Multiple Choice
    5·2 answers
  • Jiminez, Inc., had the following transactions during the month of March, current year. Prepare an income statement based on this
    12·1 answer
  • What did thomas hobbes believe?
    9·2 answers
  • To determine a credit score, debt, available credit and total assets are all part of the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!