In most cases, a capital decision made for the purpose of expanding a successful business should seek
Question:
In most cases, a capital decision made for the purpose of expanding a successful business should seek to
a. Increase the capacity of the business.
b. Enhance the marketing effort of the business.
c. Increase the cash reserves of the business.
d. Enhance the quality of the staff members employed by the business.
Step by Step Answer:
a Incre...View the full answer
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed. In other words, the return on capital employed shows investors how many dollars in profits each dollar of capital employed generates. ROCE is a long-term profitability ratio because it shows how effectively assets are performing while taking into consideration long-term financing
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