QUESTION 13

1. If the profit margin is 12.5% and investment turnover is 1.1 times, return on investment is:

   		13.6%
   		11.6%
   		11.4%
   		13.8%

1 points

QUESTION 14

1. ROI for a firm with a profit margin of 4.5%, compared to a firm with a profit margin of 3.5%, will:

   		always be higher
   		always be lower
   		always be the same
   		could be higher or lower

1 points

QUESTION 15

1. In using the balanced scorecard, to which of the perspectives would the measures of 'per cent of sales from new products' and 'on-time delivery (customer defined)' be most likely to apply to?

   		innovation and improvement activities
   		financial
   		customer
   		internal operations

1 points

QUESTION 16

1. Which of the following is not an advantage of non-financial performance measures?

   		There is no proven cause and effect link between non-financial measures and economic success.
   		Non-financial performance measures can identify problems in a more timely fashion.
   		Non-financial performance measures can easily be benchmarked.
   		Non-financial performance measures are more likely to lead to longer-term performance gains, as they tend to be linked more readily to the organisation's goals.