Crowdsourcing is one of many means of idea screening. True or False?
Answers
True, Therefore, the statement that "Crowdsourcing is one of many means of idea screening" is true.
Crowdsourcing is the practice of obtaining information or input into a task or project by enlisting the assistance of a large number of people, either paid or unpaid, typically through the internet. Crowdsourcing can be used for various purposes, including idea screening. Idea screening is a process of identifying and evaluating new product concepts to determine their viability, feasibility, and market potential.
It involves gathering information, analyzing data, and selecting the most promising ideas for further development. Crowdsourcing is one of many means of idea screening. It can be used to generate new ideas, evaluate existing ideas, and gather feedback from potential customers. Crowdsourcing can provide valuable insights and perspectives that might not be available through traditional idea screening methods.
To know more about Crowdsourcing visit:
https://brainly.com/question/32971312
#SPJ11
Related Questions
income, age, gender and race are all elements of which macroenvironmental factor?
Answers
income, age, gender, and race are all elements of the demographic macroenvironmental factor.
The demographic factor of the macroenvironment is concerned with the characteristics of a population, such as age, gender, income, education, and ethnicity. Income, age, gender, and race are all important demographic elements that can affect a company's marketing and sales strategies.
For example, a company targeting a younger audience may use social media platforms to reach their audience, while a company targeting an older demographic may use print ads in newspapers. Similarly, income levels may influence the pricing of products or services offered by a company, and race or ethnicity may affect product preferences and cultural nuances. Understanding these demographic factors is crucial for companies to effectively target their audience and remain competitive in the market.
To know more about income visit:
https://brainly.com/question/14732695
#SPJ11
Amber would like to involve the audience while she gives a speech. She can _____________ to achieve this.
A) Use eye contact
B) Incorporate activities
C) Ask questions
D) Use hand gestures
E) All of the above
Answers
E) will be the right answer since all those choices include engaging with the public!
Have a good day
During a speech or presentation, speakers should use certain gestures to attract the audience and to engage them in the speech.
The correct answer is:
Option E. All of the above
This can be explained as:
Engaging and maintaining audience attraction is very crucial for the speech and presentations.To attract the audience the speaker should maintain eye contact with them rather than seeing at other places.Using hand gestures is a good approach because standing still makes the speech dull.During the speech or a presentation, it is important to have two-way communication so that asking questions and conducting some activities will make the session more lively.Therefore, for involving the audience during a speech the speaker should maintain eye level, incorporate some activities and questions.
To learn more about engaging audience during speeches follow the link:
https://brainly.com/question/1130529
Did someone see the Steelers and Washington FT game yesterday?
Answers
Answer:
Yes
Explanation:
Because I watched it
According to michael porter, which strategy can be followed by an organization to successfully compete in the marketplace?
Answers
According to Michael porter, Focus strategy can be followed by an organization to successfully compete in the marketplace Michael Porter defines three strategy types that can attain competitive advantage. These strategies are cost leadership, differentiation, and market segmentation (or focus).
Focus Strategy is the strategy which believes in concentrating on a small segment defined in terms of customer segment or geographical territory. A focus strategy means carefully choosing the arena to compete in and narrowing the competitive scope. By selecting carefully a segment and meeting the needs of that segment better than competitors who target more broadly defined segments, companies can gain competitive advantage.
to learn more about Focus Strategy click below
brainly.com/question/13634225
#SPJ4
Investors minimize risk by investing money in __________. A. one specific company B. a variety of companies C. newly-formed corporations D. companies that are competitors Please select the best answer from the choices provided A B C D
Answers
Answer: B. a variety of companies
Explanation:
Investors minimize risk by investing money in a variety of companies. The reason for this is to minimize risk. Investing in one specific company isn't ideal because in the case of the company running at a loss, the investor loses all his or her money as well.
On the other hand, when the investor invest in different companies, the risk is minimized. When one company isn't doing well, others will probably be doing well.
Activity 3
Calculate Profit
Answers
Answer: See explanation
Explanation:
Profit is calculated as:
= Selling price - Cost price
1. Selling price = 1353
Cost price = 1230
Profit = Selling price - Cost price
= 1353 - 1230
= 123
2. Selling price = 1350
Cost price = 900
Profit = Selling price - Cost price
= 1350 - 900
= 450
3. Selling price = 1500
Cost price = 1200
Profit = Selling price - Cost price
= 1500 - 1200
= 300
4. Selling price = 2960
Cost price = 850
Profit = Selling price - Cost price
= 2960 - 850
= 2110
You have become a trusted resource for your organization, and they have asked for your advice on gaining a competitive advantage in the field. More specifically, they would like your analysis and recommendations on ways to bring their company culture, demographics, and technologies up to current industry practices and beyond. Review the demographic and technological information about your company. If the information is not public, base your decisions on a similar company and research. This information will assist you as you complete your Organizational Presentation in Step 2 of this assessment.
Answers
Improving company culture, demographics, and technologies can contribute to gaining a competitive advantage.
To enhance company culture, it is essential to foster an environment that values employee engagement, collaboration, and innovation.
This can be achieved through initiatives such as promoting open communication channels, encouraging continuous learning and professional development, recognizing and rewarding employee achievements, and creating a diverse and inclusive workplace culture.
In terms of demographics, it is important to have a workforce that reflects the diversity of the customer base and target market. This can be achieved through targeted recruitment and hiring practices, implementing diversity and inclusion programs, and providing equal opportunities for career growth and advancement.
Regarding technology, staying up to date with current industry practices and adopting cutting-edge technologies can give your organization a competitive edge. This may include investing in cloud computing, data analytics, artificial intelligence, automation, and digital transformation initiatives.
It is crucial to regularly assess technological needs, conduct market research, and invest in training and development to ensure employees have the necessary skills to leverage these technologies effectively.
For more such question on company visit:
https://brainly.com/question/6528766
#SPJ8
Does the United States have a crime "problem" compared to other advanced and industrialized nations? Why or why not?
Why are the definitions of crime and criminal behavior critically important to political entities? Explain.
Answers
Assessing whether the United States has a crime "problem" compared to other advanced and industrialized nations is a complex matter that requires careful analysis and consideration of various factors. It is essential to recognize that crime rates and their comparison can be influenced by numerous socio-economic, cultural, and demographic factors.
Here are some points to consider:
Crime Rates: When evaluating crime levels, it is crucial to examine various crime indicators, such as violent crime rates, property crime rates, or specific types of offenses. Comparative analysis should consider the specific types of crimes and the frequency at which they occur.
Data and Reporting: Comparing crime rates across nations can be challenging due to differences in reporting practices, data collection methodologies, and legal definitions. Variations in crime reporting and recording practices can affect the accuracy and comparability of crime statistics.
Socio-economic Factors: Crime rates are influenced by socio-economic factors such as poverty, income inequality, unemployment rates, educational attainment, and social welfare systems. These factors can vary among countries and have an impact on crime levels.
Cultural and Demographic Differences: Cultural and demographic factors, including population density, diversity, social norms, and attitudes towards crime, can also affect crime rates. These factors can differ significantly among nations, leading to variations in crime levels.
Regarding the definitions of crime and criminal behavior, they are critically important to political entities for several reasons:
Legal Framework: Definitions of crime form the foundation of a country's legal system. They define what actions are considered unlawful and provide guidelines for law enforcement, the judiciary, and the criminal justice system to identify, prosecute, and punish offenders.
Consistency and Fairness: Clear and precise definitions of crime ensure consistency and fairness in the application of laws. It helps prevent arbitrary or discriminatory enforcement and ensures equal treatment under the law.
Public Safety and Order: Defining criminal behavior helps protect public safety and maintain social order. By identifying and categorizing certain behaviors as crimes, governments can establish rules and regulations that help deter individuals from engaging in harmful actions and protect citizens from harm.
Resource Allocation: Accurate definitions of crime assist in resource allocation for law enforcement, judicial processes, and correctional systems. It enables governments to focus their efforts and resources on combating specific types of criminal behavior based on their severity and impact on society.
To know more about crime here
https://brainly.com/question/6203610
#SPJ11
Suppose a country has the following Phillips curve: π = π' – 0.4 (u - u"), where expectations are adaptive. Compute the sacrifice ratio in terms of output (assuming that starting at the natural rate of unemployment, and using Okun's law Δy=-2Δu) a) O b) 0.4 c) 2.5 d) 5
Answers
the sacrifice ratio in terms of output is a) Undefined b) -2.5 c) -0.8 d) -0.4
The sacrifice ratio measures the percentage of output loss necessary to reduce inflation by 1 percentage point. It is calculated using the formula:
Sacrifice Ratio = (Δy / π) = (Δu / λ)
where Δy represents the change in output, π represents the change in inflation, and λ represents the coefficient of the Phillips curve.
Given the Phillips curve equation: π = π' - 0.4(u - u"), we can rearrange it as:
Δπ = π' - π = -0.4(Δu)
From Okun's law, we know that Δy = -2Δu. Substituting this into the equation above, we have:
Δπ = -0.4(-2Δu)
Simplifying, we get:
Δπ = 0.8Δu
Now, let's calculate the sacrifice ratio for different values of λ:
a) λ = O:
Sacrifice Ratio = (Δy / π) = (Δu / λ) = (-2Δu / 0) = Undefined
b) λ = 0.4:
Sacrifice Ratio = (Δy / π) = (Δu / λ) = (-2Δu / 0.4Δu) = -2.5
c) λ = 2.5:
Sacrifice Ratio = (Δy / π) = (Δu / λ) = (-2Δu / 2.5Δu) = -0.8
d) λ = 5:
Sacrifice Ratio = (Δy / π) = (Δu / λ) = (-2Δu / 5Δu) = -0.4
Therefore, the sacrifice ratio in terms of output is:
a) Undefined
b) -2.5
c) -0.8
d) -0.4
To know more about sacrifice ratio :
https://brainly.com/question/32335953
#SPJ4
Why is a brand important to a business?
Answers
Do you think it is true that one person can make a difference? Why or why not?
Answers
A ripple effect that, over time, can actually impact thousands over generations.
A broadening effect since one person influences many, like multiplying tree branches.
So, yes.
Which one of the following is not a use case for the Hootsuite Organizations feature? A) Control off-brand communicationsB) Plan the content publishing schedule in a calendar formatC) Limit access to social network passwordsD) Facilitate team collaboration to address customer feedback on social media E) Specify what actions team members have permission to perform in Hootsuite
Answers
The use case that is not a feature of the Hootsuite Organizations is option C, which is limiting access to social network passwords.
Hootsuite does not have the capability to limit access to social network passwords, as this function is usually handled by the social networks themselves. The other options are all features of the Hootsuite Organizations, which allows teams to collaborate and manage social media accounts in a streamlined way. With Hootsuite Organizations, teams can control off-brand communications, plan content publishing schedules, facilitate team collaboration to address customer feedback on social media, and specify what actions team members have permission to perform in Hootsuite. These features make it easier for teams to manage their social media presence and engage with customers in a more efficient and effective way.
To learn more about network, visit:
https://brainly.com/question/30155190
#SPJ11
Get them before they all sell out!!!!
Answers
Answer: ooo hehe boi thx for the points
Explanation: the answer is my happyness
governments promote and regulate natural monopolies in order to:
(A) Take on the costs of providing essential services.
(B) Maximize profits on goods that all citizens buy.
(C) Discourage new businesses from forming
(D) Compete with the private sector producing consumer goods.
Answers
Answer: A
Explanation: take on the costs of providing essential services
Governments promote and regulate natural monopolies in order to take on the cost of providing essential services. Therefore, option A is the correct option.
What are essential services?Essential services are those services that are provided by the government at a low cost or no cost at all. Such services are basic and essential in nature at the same time. The services are basic, such as hospital and medical care, education, food, and water, and so on.
The reason behind the monopoly of the government on essential goods is the welfare of the citizens and not profit-making like private organizations. Natural monopolies are encouraged and regulated by governments in order to cover the expense of providing important services. As a result, choice A is the best one.
Learn more about governments here:
https://brainly.com/question/1925443
#SPJ5
OSHA, the CPSC, and the EPA are in the alphabet soup bowl of social regulatory agencies that are primarily concerned with which of the following?
a. preventing firms from growing too large
b. mergers and acquisitions among firms in different industries
c. the profits being earned by oligopolies and monopolies
d. the prices that firms charge for their products
e. the conditions under which goods and services are produced and the safety of these items for the consumer
Answers
The social regulatory agencies OSHA (Occupational Safety and Health Administration), CPSC (Consumer Product Safety Commission), and EPA (Environmental Protection Agency) are primarily concerned with ensuring the conditions under which goods and services are produced and the safety of these items for the consumer. The correct answer is option e.
Their focus is on protecting workers' health and safety, ensuring the safety of consumer products, and safeguarding the environment. These agencies establish and enforce regulations, standards, and guidelines to promote workplace safety, regulate the safety of consumer products, and address environmental issues.
Their objective is to prevent accidents, injuries, and health hazards, as well as to protect consumers from unsafe or harmful products.
The correct answer is option e.
To know more about OSHA refer to-
https://brainly.com/question/9178716
#SPJ11
If any body wants to be doctor ; what else does he need to do?
Answers
Answer:
go to med school
Explanation:
.........
in a secondary offering, a member who acted as manager or co-manager cannot issue a research report on that company within how many days following the effective date? a 30 calendar days b 20 calendar days c 10 calendar days d 3 calendar days
Answers
In a secondary offering, a member who acted as manager or co-manager cannot issue a research report on that company within 10 calendar days following the effective date.
What is a secondary offering?
A secondary offering is a new financial instrument release in which shares of an already-issued stock are sold to the public for the first time. Secondary offerings are sold by firms to increase capital to meet business goals or by individual stockholders to liquidate their shares.
If a company has already held an IPO, it will issue additional shares in a secondary offering, increasing its outstanding shares. A secondary offering is usually made by institutional investors and major stockholders rather than the company itself.
To learn more about stockholders here:
https://brainly.com/question/18523103
#SPJ11
Unless instructed otherwise by your tutor, please follow the below instructions:
Length of Report - 1200 words
File type -
Font - 12 pitch font - Arial or Times New Roman
Format - Double spaced and justified
Referencing - Harvard system
Notes:
Your assignment must include page numbers and word count.
You will receive a 10% penalty for this assessment if you go over the word
count by more than 10%. If your assignment is significantly under the
word count, you may not have answered the question in full. This will be
reflected in your overall mark and feedback given by your tutor.
The word count does not include contents, end of text references or appendices
Module learning outcomes
Upon successful completion of this module, you will be able to:
Knowledge-Based Outcomes
K1 Understand the nature of management and how management theories can be applied to the
real world
K2 Critically evaluate corporate strategy in relation to specific business situations
K3 Demonstrate effective analytical skills in an academic written format
K4 Evaluate the skills required to be an effective manager
K5 Demonstrate effective communication skills
This assignment requires you to demonstrate that you can:
1. Understand how management theories can be applied in the real business world through
written responses to set questions in a closed book examination
2.
Apply relevant business tools in an appropriate written format, responding to set questions in
a closed book examination
Assignment purpose
The purpose of this assignment is for you to demonstrate that you can use the analytical skills
developed throughout the course and apply those skills effectively through the completion of an
individual report on a given business situation. You will be expected to use an appropriate written
format, in addition to academic language and a formal register.
Assignment instructions:
Produce an individual report to discuss the question below. Make sure that you refer to any research
that you have carried out and put forward clear arguments to come to a final conclusion.
Question:
During the pandemic there was a large rise in people having to work from home but
now there are pressures to get back to the office. Using your knowledge of
management theory and strategy, what issues and opportunities can this create?
Answers
The COVID-19 pandemic has brought about a significant shift in the way people work, with many individuals now having to work from home. However, with the situation gradually improving, there is now an increasing pressure to return to the office.
This report will discuss the issues and opportunities that this change can create using management theory and strategy.
Working from home has had both positive and negative effects on individuals and businesses. It has provided greater flexibility, lowered overhead costs, and reduced commuting time, resulting in a better work-life balance for employees.
However, with the return to the office, companies may face challenges such as increased overheads, logistics, and management. Managers need to be flexible in their approach, mindful of the individual needs and concerns of employees.
Companies must recognize the importance of work-life balance and incorporate measures to support this into their return to work strategy. On the other hand, this could provide an opportunity for companies to introduce new policies, such as flexible work arrangements, which could improve employee satisfaction and retention.
In conclusion, a well-planned and executed return to work strategy combined with appropriate management theory and strategy can help companies to address the issues and opportunities created by the return to office work.
Learn more about pandemic here.
https://brainly.com/questions/28941500
#SPJ11
If you had to formulate some goals for cashbuild, what would you they be?
Answers
Cashbuild can set goals to expand its market presence, enhance its product offering, improve customer experience, strengthen supplier relationships, and embrace technological advancements.
Expand Market Presence: Cashbuild can set a goal to expand its market reach by opening new stores in strategic locations or exploring online channels to tap into a broader customer base.
Enhance Product Offering: The company can focus on diversifying its product range, sourcing high-quality building materials, and incorporating sustainable and innovative solutions to cater to evolving customer demands.
Improve Customer Experience: Cashbuild can prioritize delivering exceptional customer service, ensuring knowledgeable staff, streamlined purchasing processes, and efficient after-sales support. Implementing customer feedback mechanisms and loyalty programs can also foster customer satisfaction and loyalty.
Strengthen Supplier Relationships: By establishing strong partnerships with suppliers, negotiating favorable terms, and ensuring consistent and reliable product availability, Cashbuild can enhance its competitive advantage and meet customer expectations.
Embrace Technological Advancements: Setting goals to leverage technology, such as implementing an efficient inventory management system, optimizing online platforms, and adopting automation solutions, can enhance operational efficiency and offer a seamless customer experience.
To learn more about cash build
https://brainly.com/question/27569230
#SPJ4
you plan to retire in 25 years. you currently have $80,000 saved, and you think you will need $500,000 at retirement. what annual interest rate must you earn to reach your goal, assuming you don't save any additional funds? (assume annual compounding)
Answers
You plan to retire in 25 years. you currently have $80,000 saved. The annual interest rate is 7.61%
An Annual interest rate is a number that represents the total monthly cost of adopting plutocrat, expressed as a chance of the top loan quantum.
Calculating the problem:we know that,
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
500,000 = 80,000 × (1+r/100) ^25
(500,000/80,000) ^ (1/25) = (1+r/100)
(1+r/100) = 1.0761
r = 1.0761 - 1
r =7.61%(Approx)
What's called annual interest?The periodic interest rate, occasionally called the standard periodic interest rate or base rate, is the chance value you generally see first when comparing fiscal products. It's the introductory interest that you will pay on your loan or earn on your savings regard without taking compounding or freights into consideration.
Learn more about annual interest rate:
brainly.com/question/15728540
#SPJ4
stock a has a beta of 1.2, stock b's beta is 1.46, and stock c's beta is .72. if you invest $2,000 in stock a, $3,000 in stock b, and $5,000 in stock c, what will be the beta of your portfolio?
Answers
The beta of the given portfolio is 1.038
The beta value of a portfolio is a measure of its total systemic risk. It is the same as the weighted average of the individual beta coefficients of all the equities in a portfolio.
The beta coefficient of a portfolio is the direct weighted average of individual beta coefficients, but the variance and standard deviation of a portfolio are determined using a sophisticated formula that takes mutual correlations of returns on individual assets into account.
The beta of stock a = 1.2
The beta of stock b = 1.46
The beta of stock c = 0.72
Amount invested in stock a = $2000
Amount invested in stock b = $3000
Amount invested in stock c = $5000
The beta of the portfolio:
ValueP = 2000+3000+5000 = $10000
\(\beta P\)= (2000/10000)*1.2 + (3000/10000)*1.46 + (5000/10000)*0.72
= 0.20*1.2 + 0.3*1.46 + 0.50*0.72
= 0.24 + 0.438 + 0.36
= 1.038
Learn more about beta of portfolio:
https://brainly.com/question/15683560
#SPJ4
Using one of the leadership roles or extracurricular activities you prioritized as being important to you, describe what impact the experience had on you, what you contributed, what you learned about yourself, and how it has influenced your plans for the future?
Answers
One of the leadership roles that are on the rise in today's globalized environment is the role of the visionary leader, who is one who has a strategic and planned vision about the organizational resources and future of the company.
A visionary leader aims to keep the organization in line with the highest standards of innovation, always attentive to new trends and market changes, using a systemic vision.
Therefore, relating the visionary leadership role to personal development, one can understand aspects that will help an individual to be adaptable to eventualities, be more organized, manage essential resources and plan for the future.
Learn more here:
https://brainly.com/question/24339179
For tax porposes, you may nave to report the value of your assets, such as cars of religerators The value yod tepod diops with time. Strighit line depreciatiod" assumes that the value is a inear Value o dedas
Answers
Straight-line depreciation assumes that the value of assets depreciates evenly over time, following a linear decline.
Straight-line depreciation is a commonly used method for estimating the decline in the value of assets for tax purposes. Under this approach, it is assumed that the asset's value decreases at a constant rate over its useful life. In other words, the asset's value depreciates in a linear fashion. For example, if you have a car or a refrigerator, the straight-line depreciation method assumes that the asset's value will decrease by the same amount each year.
To calculate straight-line depreciation, you need to determine the initial value of the asset and its useful life. Then, you divide the difference between the initial value and the estimated salvage value (the value at the end of its useful life) by the number of years of the asset's useful life. This gives you the depreciation expense that can be deducted for tax purposes each year.
It's important to note that the straight-line depreciation method may not accurately reflect the actual decline in value for certain assets. Some assets may depreciate more rapidly in the early years and slow down later, while others may experience different patterns of depreciation. However, straight-line depreciation provides a simplified and consistent approach for reporting asset values for tax purposes.
Learn more about expense here:
https://brainly.com/question/29850561
#SPJ11
How are read and unread emails typically shown in the Inbox? *
Unread emails are shown in bold text. Read emails are shown in normal text.
Unread emails are shown in normal text. Read emails are shown in bold.
Both unread emails and read emails are shown in normal text
Both unread emails and read emails are shown in bold
Answers
Answer:
Unread emails are shown in bold text.
Explanation:
In recent years, a few countries, claiming to pursue socialist strategies because of the exploitative nature of capitalism, have made it exceedingly difficult for businesses to operate in their country. Other countries have pursued a strategy, often called democratic socialism, which includes significant government involvement in the economy, but also significant business competition. Which country in the radar chart above stands out as the worst in the world on each of the variables identified, and which country stands out for its ease of doing business
Answers
Which country in the radar chart above stands out as the worst in the world on each of the variables identified
What is one way that technology can improve the production of goods? Websites can allow consumers to purchase goods online. Container ships can transport a number of goods at once. Automation can create goods more cheaply and easily. Airlines can send goods from one place to another. WILL MARK BRAINLIEST
Answers
One way that technology can improve the production of goods is : ( C ) Automation can create goods more cheaply and easily
What is AutomationAutomation is the creation and application of technologies to the process of production and distribution of goods and services with minimal or no human intervention. Automation makes the creation of goods easier and with less cost.
Hence we can conclude that One way that technology can improve the production of goods is Automation can create goods more cheaply and easily.
Learn more about Automation : https://brainly.com/question/11211656
#SPJ2
The project manager building a swimming pool and clubhouse at a retirement community is reviewing the chronological sequence of activities that must be completed on the project and the estimated time of completion of each activity. She is employing the
Answers
The technique that's employed by the project manager is PERT technique.
What is a project?It should be noted that a project simply means a work that's carried out in order to achieve a desired goal.
In this case, since the manager is reviewing the chronological sequence of activities that must be completed on the project, he's using the PERT technique.
Learn more about project on:
https://brainly.com/question/25009327
Jamie purchased a 50% general partnership interest in Partnership M for $40,000 in Year 1. To finance operations, Partnership M entered into a recourse debt agreement for $100,000 of which each partner is personally liable for half. Partnership M also entered into a nonrecourse debt agreement for $22,000, which is secured by partnership equipment. Jamie’s at-risk limitation on losses is:
Answers
Answer:
$90,000
Explanation:
Calculation to determine what Jamie’s at-risk limitation on losses is:
Using this formula
Risk limitation on losses=[Partnership M +(General partnership interest× Recourse debt agreement)]
Let plug in the formula
Risk limitation on losses= [$40,000 + (50% × $100,000)]
Risk limitation on losses=($40,000+$50,000)
Risk limitation on losses=$90,000
Therefore Jamie’s at-risk limitation on losses is:$90,000 and the reason why Jamie’s at-risk limitation on losses was the amount of $90,000 was because of his share of the recourse debt of the amount of $100,000 as well as the cash amount of $40,000 he invested.
what your name answer in 1 minute
Answers
Answer:
Adrean :)
Explanation:
eugh
why do equity holders care more about roe than about roa?
Answers
Equity holders generally care more about Return on Equity (ROE) than Return on Assets (ROA) because ROE directly measures the profitability of equity investment and indicates how effectively a company generates profits using shareholders' funds.
Equity holders, such as shareholders or owners of a company, are primarily concerned with the return they receive on their investment. Return on Equity specifically focuses on the profitability of equity investment. It is calculated by dividing net income by shareholders' equity, which represents the portion of a company's assets owned by shareholders. ROE measures how effectively a company utilizes shareholders' funds to generate profits.
On the other hand, Return on Assets (ROA) measures the profitability of a company's total assets, regardless of the capital structure or financing. It is calculated by dividing net income by total assets. While ROA provides an indication of overall profitability, it does not specifically reflect the return on equity investment.
Equity holders prioritize ROE because it directly assesses the profitability generated by their ownership stake. A higher ROE implies that the company is efficiently utilizing shareholders' funds to generate profits and can provide a higher return on investment. Equity holders use ROE as a key metric to evaluate the company's performance, compare it with industry benchmarks, and make informed decisions regarding their investment portfolio. By focusing on ROE, equity holders can assess the profitability and efficiency of their investment in a company more directly and effectively than by considering ROA alone.
To learn more about shareholders click here, brainly.com/question/28170754
#SPJ11
Equity holders care more about Return on Equity (ROE) than about Return on Assets (ROA) because ROE measures the profitability of a company in relation to the equity that investors have provided.
ROE shows how much profit is generated for every dollar of equity that investors have contributed to the company. Therefore, ROE is a more relevant metric for equity holders because it shows how much profit is generated from the equity investment, while ROA is more relevant for creditors because it measures the profitability of the company's assets.
On the other hand, ROA measures the profitability of a company in relation to its total assets. While ROA is an important metric, it does not take into account the type of assets a company has or the amount of equity investors have provided. For example, a company that has a lot of fixed assets (such as property, plants, and equipment) may have a high ROA, but if those assets do not generate a lot of cash flow, they may not be very valuable to equity investors.
Learn more about Equity Visit: brainly.com/question/11556132
#SPJ4