Question 1

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

Accepted Answer

The stock turn rate measures how many times a company can sell and replace its inventory within a certain period of time, indicating its ability to move its inventory quickly. A higher stock turn rate is generally favorable as it implies higher sales and better inventory management.

Question 2

The __________ is the ratio of net income to the investment used to earn that net income.

Accepted Answer

Return on investment (ROI) is the ratio of net income to the investment used to earn that net income. Markup, selling margin, and markdown are all pricing terms, while return on assets (ROA) measures a company's net income in relation to its total assets.

Question 3

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income). Calculate his return on investment.

Accepted Answer

The answer of Leon George sold kites at the beach...

Question 4

Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.

Accepted Answer

ROI = [Net income ÷ Investment] × 100 = [$2,200 ÷ $4,300] × 100 = 51.2 percent.

Question 5

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

Accepted Answer

The answer of Leon George sold kites at the beach...

Quiz 23: Financial Aspects of Marketing

__________ is the financial ratio that measures the ability of a firm to move its inventory quickly.

The __________ is the ratio of net income to the investment used to earn that net income.

Leon George sold kites at the beach last summer. He invested $2,500 in the venture and made $1,400 net profit (net income) . Calculate his return on investment.

Rebecca Gollanek makes and sells wooden cooling racks for cakes, cookies, and bread for $22.50 each. She has invested $4,300 in the venture and made $2,200 in net profit. Calculate her return on investment.

Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.