If profit has increased over a period of time relative to sales, and owners' investments have not increased at the same rate, then it would be reasonable to conclude that management has been efficient in increasing returns to shareholders.

Question

Quizplus · Accepted Answer

If profit has increased at a faster rate than owners' investments, then management has been able to generate high returns on the investments made by shareholders. This indicates efficiency on the part of the management in utilizing the resources available to them.

If Profit Has Increased Over a Period of Time Relative