How Will Decreases in the Following Items Affect Return on Investment

question 13

Multiple Choice

How will decreases in the following items affect return on investment (ROI) ?
$\begin{array} { l c c } & \text { Decrease in Sales } & \text { Decrease in Equipment } \\\end{array}$
A) $\begin{array} { l c c } & \text { Decrease ROI } && \text { Decrease ROI } \\\end{array}$
B) $\begin{array} { l c c } & \text { Decrease ROI } && \text { Increase ROI } \\\end{array}$
C) $\begin{array} { l c c } & \text { Increase ROI } && \text { Decrease ROI } \\\end{array}$
D) $\begin{array} { l c c } & \text { Increase ROI } && \text { Increase ROI } \\\end{array}$

• A) \(\begin{array} { l c c } & \text { Decrease ROI } && \text { Decrease ROI } \\\end{array}\)
• B) \(\begin{array} { l c c } & \text { Decrease ROI } && \text { Increase ROI } \\\end{array}\)
• C) \(\begin{array} { l c c } & \text { Increase ROI } && \text { Decrease ROI } \\\end{array}\)
• D) \(\begin{array} { l c c } & \text { Increase ROI } && \text { Increase ROI } \\
• \end{array}\)
• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Antitrust Cases

Legal disputes focused on stopping or managing businesses that violate competition laws designed to promote market fairness and prevent monopolies.

Herfindahl Index

A measure of market concentration and competition, calculated as the sum of the squares of the market shares of all firms within an industry.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing monopolies.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.