Which of the Following Would Best Explain a Situation Where

question 64

Multiple Choice

Which of the following would best explain a situation where the ratio of net income/total equity of a firm is higher than the industry average, while the ratio of net income/total assets is lower than the industry average?

• A) The firm's net profit margin is higher than the industry average.
• B) The firm's asset turnover is higher than the industry average.
• C) The firm's equity multiplier must be lower than the industry average.
• D) The firm's debt ratio is higher than the industry average.
• E) None of the options are correct.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often resulting in prejudice against other cultures.

Cultural Pluralism

The coexistence of diverse cultures, where cultural differences are accepted and appreciated by the majority society.

Stereotyping

The act of assigning a fixed, oversimplified image or idea to a person or group, often based on limited information.

Xenophobia

A fear or hatred of strangers or foreigners, often manifesting in discriminatory attitudes or behaviors.