A firm’s operating return on assets is more than its peer group’s return. Which of the following statements draws an incorrect i

Question

3 years ago

11

A firm’s operating return on assets is more than its peer group’s return. Which of the following statements draws an incorrect i

mplication from this comparison of asset utilization ratios?
The firm’s operations management and asset management merit shareholders’ confidence.

The firm is generating fewer cents of operating profits for every $1.00 of assets, compared to that earned by the peer group.

The firm is producing more profits from their assets than its peers.

The firm is earning a competitive return on the assets.

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