versus Leverage ratios measure how a company chooses to finance its operations using O A. Equity, expenses _. (Ch.2) O B. Expenses; revenues O C. Liabilities; assets O D. Debt; equity Identify the following correct statement regarding profitability ratios: (Ch.2) O A. Whereas a net profit ratio is represented as a percentage, the return on equity ratio is not represented as a percentage OB. If a company has a net profit ratio of 6% this means 6% of sales returned to the companies ownership in the form of profits on their capital OC. If a company has a net profit ratio of 4% this means that for every dollar of revenue generated the company returned 4 dollars to the owners of capital OD. If a company has a return on equity ratio of 8% this means that the company used 8% of owner equity in generating returns Which of the following is an estimate of how much money investors will pay for each dollar of the organization's earnings? (Ch.2) A. Interest coverage ratio B. Net profit margin O C. Return on equity OD. Price-to-earnings ratio There are three models of franchise ownership that account for how for-profit professional sport teams are owned. Which of the following is correct regarding franchise ownership? (Ch.1) O A. The most common form of ownership in the NFL is the publically traded corporation model OB. Multiple ownership models are rarely used in professional sport because franchises are generally affordable for individuals OC. The multiple ownership model differs from the private investment syndicate model in that private investment syndicate models are composed of just one individual whereas the multiple ownership model includes multiple owners OD. In the single owner/private investment model the individual who owns the firm may play an active or hands-off role in operating the team The important difference between debt and equity financing is: (Ch.1) O A. In equity financing the lender gains an ownership interest in the organization whereas in debt financing the lender does not gain an ownership interest O B. In equity financing the organization is required to repay a specific amount of money at a given time O C. Debt financing is short-term whereas equity financing is long-term O D. All of the above