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Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average - HSC - SSCE Business Studies - Question 4 - 2004 - Paper 1
Question 4
Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average. (B) There has been an improvement in the expense r... show full transcript
Worked Solution & Example Answer:Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average - HSC - SSCE Business Studies - Question 4 - 2004 - Paper 1
Step 1
Identify the correct statement.
Answer
To determine the correct statement, we need to analyze each of the provided options in relation to industry performance metrics. The correct statement, according to the marking scheme, is:
(D) Each of the profitability ratios indicates performance below industry averages.
This suggests that none of the performance indicators met or exceeded the industry benchmarks, thus confirming that profitability is lacking relative to the industry.