A company that is running "lean and mean:"
A) has a high liquidity ratio.
B) has a low gross profit margin.
C) should have a total asset turnover ratio that is high relative to the industry.
D) is utilizing fewer of its assets for generation of sales.

Question

Quizplus · Accepted Answer

A company running "lean and mean" focuses on efficiency, including using its assets effectively to generate sales. A high total asset turnover ratio indicates that the company is generating more sales per dollar of assets than its competitors, aligning with the "lean and mean" approach.

A Company That Is Running "Lean and Mean