Comparison of asset utilization ratios

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Reference no: EM132072628

A firm's operating return on assets is more than its peer groups. Which of the following statements draws an INCORRECT implication from this comparison of asset utilization ratios?

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

b) The firm's operations management and asset management merit shareholders' confidence

c) The firm is generating fewer costs of operating profits for every $1 of assets, compared to that earned by the peer group.

d) The firm is earning a competitive return on the assets

2. Managers can use ratios to prepare, at both the firm and division levels, _____, such as those associated with the launch of a new product.

a) managerial developments

b) executive ventures

c) financial projections

d) monetary assignments

Reference no: EM132072628

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