Multiple choice

Directions: State whether the following statement is True Or False.

Rate of return on capital employed is a turnover ratio.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The rate of return on capital employed (ROCE) is a profitability ratio, not a turnover ratio. Turnover ratios measure how efficiently a company uses its assets (e.g., inventory turnover).

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