The two primary determinants of return on assets that are utilized in single-loop learning are:

Question

Quizplus · Accepted Answer

Net profit margin and asset turnover are the two primary determinants of return on assets. Net profit margin is the ratio of net income to total revenue, indicating how efficiently a company is able to generate profit from its sales. Asset turnover is the ratio of total revenue to total assets, indicating how efficiently a company is utilizing its assets to generate revenue. Single-loop learning focuses on achieving planned results and utilizing actual results to adjust strategies to improve performance. By analyzing net profit margin and asset turnover, companies can identify areas for improvement and adjust their strategies to achieve better return on assets.

The Two Primary Determinants of Return on Assets That Are