BD Hydro Increases Its Operating Efficiency Such That Costs Decrease

question 231

Multiple Choice

BD Hydro increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the:

• A) Return on equity will increase.
• B) Return on assets will decrease.
• C) Profit margin will decline.
• D) Equity multiplier will decrease.
• E) Price-earnings ratio will increase.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform set of rules for the international sale of goods.

International Contract

An agreement enforced across national borders, involving parties from different countries.

Merchants

Individuals or businesses involved in the trade of goods, services, or commodities for profit.

Juriscience

In the development of the law, the point at which science, technology, and the law intersect.