1. The operating ratio:

1) highlights the relationship between net operating income and operating expenses.

2) shows the percentage of potential gross income consumed by operating expenses.

3) expresses operating expense as a percent or decimal fraction of effective gross income.

4) is the reciprocal of the break-even ratio.on how they can improve their product and image?

2. The accept / reject decision generated with the internal rate of return approach will never conflict with results generated with the net present value approach.

1) True

2) False

3. The yield on extremely short-term Treasury bills issued by the federal government is frequently taken as a reasonable approximation of the risk-free rate.

1) True

2) False