Return on Equity (ROE) Is a Function of Three Ratios

question 42

True/False

Return on equity (ROE) is a function of three ratios: net profit margin, return on assets, and financial leverage.

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Definitions:

Organic Solidarity

Describes later societies organized around interdependence and the increasing division of labour.

Durkheim

a founding figure in sociology, Emile Durkheim's work focused on social solidarity, the division of labor, and the role of religion in society, among other themes.

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Dominant Ideology

The prevailing cultural beliefs, values, and norms that tend to support and maintain the current power structure and societal hierarchy.