Question : What are the major sources of human capital in a country?
A: Investment in education
B: Investment in health

Option 1: Only A correct

Option 2: Only B correct

Option 3: Both of the above

Option 4: None of the above

Question : Which of the following statements are incorrect with respect to Return on capital employed?

Option 1: Return on Capital Employed or Return on Investment assesses overall performance (profitability) of the enterprise.

Option 2: It measures how efficiently the resources of the business are used.

Option 3: Return on Capital Employed is not a fair measure of the profitability of any concern

Option 4: it should be compared with its own ratios of the past years

Question : Which of the following statements are incorrect with respect to Return on capital employed?

Option 1: Return on Capital Employed or Return on Investment assesses overall performance (profitability) of the enterprise.

Option 2: It measures how efficiently the resources of the business are used.

Option 3: Return on Capital Employed is not a fair measure of the profitability of any concern

Option 4: it should be compared with its own ratios of the past years

Question : Capital employed in a firm is calculated from the liabilities approach as follows:

Option 1: Capital Employed = Total Assets (excluding goodwill) – Outside Liabilities

Option 2: Capital Employed = Fixed Assets + Working Capital

Option 3: Capital Employed = Partners capital (including new partner's capital) + Free reserves + Profit & Loss (Cr.) - Existing goodwill - Fictitious Assets - Non trade Investment

Option 4: All of the above

Question : What ratios are affected by "Return on Investment"?

Option 1: Gross profit ratio and net profit ratio

Option 2: Earnings per share and net profit ratio.

Option 3: Capital employed ratio and assets turnover ratio

Option 4: Net profit ratio and capital turnover ratio