Describe the three components of the DuPont ratio
What will be an ideal response?
Answer: The three components are: operating efficiency, as measured by the profit margin (Net Income/Sales); asset management efficiency, as measured by asset turnover (Sales / Total Assets); and, financial leverage, as measured by the equity multiplier (Total Assets / Total Equity). If we multiply the three ratios, we have return on equity (ROE). The profit margin tells us how much net profit we make for every dollar of sales. The asset management efficiency component tells us how much sales we can get for every dollar invested in assets. The equity multiplier gives us an idea of how much leverage is being used (a higher multiplier indicates more leverage).
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What are the relevant circumstances that justify differential accounting for intercorporate equity investments?
What will be an ideal response?
In which society is there a general belief that the fewer the rules the better and that high job mobility is a plus?
a. long-term orientation b. high masculinity *c. low uncertainty avoidance d. short-term orientation
When preparing a report and using expert information, it is best to lead into and out of every quotation with your own words
Indicate whether this statement is true or false.
When asked an interview question that you think is illegal or discriminatory, you should
a. refuse to answer the question b. deflect the question courteously while providing some useful information c. accuse the interviewer of illegal hiring practices d. none of the above