Which of the following statement is true for ROS (profit margin)?

Select one:

a. A firm that does a better job controlling expenses will have a lower ROS (profit margin).

b. ROS (profit margin) captures the bottom line of the income statement relative to the top line if the income statement.

c. Discount Retailers will tend to have higher ROS (profit margin) than luxury retailers.

d. Firms operating in competitive markets will have a higher ROS (profit margin) than firms with differentiated products protected by patents.

Which statement is true relative to asset turnover?

Select one:

a. Outsourcing will tend to increase asset turnover.

b. Asset turnover is negatively related to productivity of assets in generating revenue.

c. A manufacturing firm would tend to have a higher asset turnover than a service firm.