Question
Having excessive funds tied up in operating assets will depress Blank______ and lower ROI.
Multiple choice question.
turnover
margin
both turnover and margin
Multiple choice question.
turnover
margin
both turnover and margin
Answers
GPT-4o mini
The correct answer is **turnover**.
Having excessive funds tied up in operating assets can lead to a lower turnover ratio, which measures how efficiently a company uses its assets to generate sales. A lower turnover can consequently lower ROI (Return on Investment), but it does not directly affect the profit margin.
Having excessive funds tied up in operating assets can lead to a lower turnover ratio, which measures how efficiently a company uses its assets to generate sales. A lower turnover can consequently lower ROI (Return on Investment), but it does not directly affect the profit margin.