Companies use profitability measures to assess performance and to: a. assess their ability to compete. b. maintain consistency in operations each month. c. measure their ability to... Companies use profitability measures to assess performance and to: a. assess their ability to compete. b. maintain consistency in operations each month. c. measure their ability to pay short-term debts on time. d. measure their ability to pay long-term debts on time.
Understand the Problem
The question asks about the use of profitability measures by companies to assess performance and what specific aspects they evaluate, providing multiple choices.
Answer
assess their ability to compete.
The final answer is assess their ability to compete.
Answer for screen readers
The final answer is assess their ability to compete.
More Information
Profitability measures help companies gauge their competitiveness in the market by evaluating performance indicators such as profit margins, return on assets, and return on equity.
Tips
Don't confuse profitability measures with liquidity measures, which relate to debt-paying abilities.
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