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galina1969 [7]
3 years ago
10

Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitabilit

y ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply.O If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales.
O An increase in the return on assets ratio implies an increase in the assets a firm owns.
O If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.
O If a company issues new common shares but its net income does not increase, return on common equity will increase.
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer:

  • If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales.  A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
  • If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes.  OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE

Explanation:

there are several profitability ratios, the most important ones are:

  1. profit margin = net profit / total revenue
  2. gross profit margin = gross profit / total revenue
  3. return on equity = net income / total shareholder equity
  4. return on assets = net income / total assets

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David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve any cust
defon

Answer:

Empowerment.

Explanation:

Empowerment: It an authority or power been given to an individual or group of people to perform certain tasks with complete determination. This power has been given so that tasks been performed diligently and smoothly.  

In corporate, individuals been empowered to hold responsibility for certain tasks and prove profitable for the organization.

Similarly, In the given case David has empowered his employee to resolve customer complaints by itself without getting escalated, however, he has limited the power by $200 to resolve any customer complaint.

7 0
3 years ago
Country A and Country B both recorded an increase in real GDP of 5 percent per year from 1980 to 2012. During this time, the pop
Murljashka [212]

Answer:

D) per capita GDP decreased for country A only

Explanation:

Per capita GDP is calculated by dividing total GDP by the total population of the country. If the population of the country grows faster than its GDP, then its GDP per capita will decrease.

For example, country A's GDP is $100, and it has 20 citizens, so its GDP per capita for year 1 = $100 / 20 = $5. If the economy grew by 4% and the population grew by 5%, then the GDP per capita on year 2 will = $104 / 21 = $4.95.

4 0
3 years ago
Private businesses have the most influence over the production of goods and
IrinaK [193]

Answer:

The characteristics of a mixed economy include allowing supply and demand to determine fair prices, the protection of private property, innovation being promoted, standards of employment, the limitation of government in business yet allowing the government to provide overall welfare, and market facilitation by the self-interest of the players involved.

6 0
2 years ago
VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16
svetoff [14.1K]

Answer:

7.58m

Explanation:

The VelSad is considering to acquire Po, Inc. by offer of 20 million cash or either 44% holding. The cost of acquisition refers to all cost incurred by a company to acquire another company. The benefit VelSad can get after acquiring Po, Inc is that it can save marketing and administrative cost by $560,000 every year. The cost of stock offer is 7.58 million. This is calculated by taking 44% of VelSad value and then discounting it at cost of capital which is 10%.

7 0
3 years ago
What type of lawsuit occurs if an employee decides to file a lawsuit against a company?
lana [24]

Answer: A. Civil case

Explanation:

  • The court cases that associate disputes between persons or businesses over funds or some incident to private rights are known as civil cases.
  • It starts by one party (business or a person) known as "plaintiff" claims to have been harmed by the actions of another party (person or business) known as the "defendant".

Hence, the lawsuit occurs if an employee decides to file a lawsuit against a company is "Civil case".

Hence, the correct option is "A".

4 0
3 years ago
Read 2 more answers
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