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Table 2.1 compares companies according to different profitability measures:
 
1. Which two of the six performance measures do you think are the most useful indicators of how well a company is being managed?
 
2. Is return on sales or return on equity a better basis on which to compare the performance of the companies listed?
 
3. Several companies are highly profitable, yet have delivered negative returns to their shareholders. How is this possible?

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