Understanding Turnover in Business

What is the primary difference between turnover and profit?

• Turnover is the revenue after expenses, while profit is the total sales.

• Turnover is the total expenses, while profit is the total sales.

• Turnover is the total sales, while profit is the revenue after expenses.

• Turnover and profit are the same.

Which type of turnover measures how quickly a company's inventory is sold and replaced?

• Sales turnover

• Inventory turnover

• Accounts receivable turnover

• Employee turnover

What does a high employee turnover rate typically indicate?

• Problems within the workplace, such as poor morale

• High demand for products or services

• Efficient collection of receivables

• Strong sales and effective inventory management

Why is turnover considered an important indicator of a company's growth?

• It directly measures profitability.

• It indicates a demand for the company's products or services.

• It shows the company's ability to generate cash flow.

• It reflects the company's marketing efforts.

Which strategy can help increase a company's turnover?

• Decreasing customer retention

• Improving marketing efforts

• Increasing employee turnover

• Reducing product lines